Please select your home edition
Edition




Collinson FX: May 15 - Budget has Kiwis on edge

by Collinson FX 14 May 2018 17:25 PDT 13 May 2018
Oceanbridge NZL Sailing Regatta, Day 3, February 5, 2018, Murrays Bay SC © Richard Gladwell

Collinson FX: May 15 - Budget has Kiwis on edge

15 May: The US trade negotiations continue with China and are progressing well. Trump has conceded the massive Chinese Company, ZTE, should be re-enabled in a compromise. The trade policy has a direct link to the North Korean negotiations, with the summit scheduled for June 12th. The US and Israel have celebrated the opening of the US Embassy in Jerusalem. This is a pointed signal to the world and a major realignment for the Middle East.

The Dollar was steady, with the EUR trading 1.1940, while the Yen moves to 109.65. Markets await some important economic data releases from the European Union, with GDP growth numbers and Industrial Production. The important ZEW Economic Sentiment report is usually an accurate gauge of future activity.

The AUD lost ground, falling to 0.7520, while the NZD looks to test 0.6900. The RBA releases minutes today, which should confirm the Central Banks propensity for inaction over monetary policy. The KIWI remains extremely vulnerable, ahead of the Rainbow Coalitions first budget, while monetary policy remains extremely generous.

Collinson FX: May 14 - Jitters over Middle East The Iranian crises continues to expand, as Israel responds to Iranian missiles, with attacks on Iranian bases in Syria. The US withdrawal from the Iranian nuclear agreement appears to be the trigger and now threatens the Syrian civil war spreading across the Middle East, becoming a multi-denominational conflict. Oil prices have gained some momentum, with the threat of sanctions being reimposed on Iran, boosting energy companies and stock markets.

The Dollar has been steady, with the EUR trading 1.1940, while the GBP holds above 1.3500. The GBP is again at the lower end of its trading range, after weak economic data releases and a dovish Statment from the Bank of England. The commodity currencies have been hammered, with the NZD trading 0.6950, while the AUD holding above 0.7500. The NZD came under extreme pressure after a reality check from the new RBNZ Governor.

This coming week has important growth data from Germany and Japan, while US Retail Sales are always an important number, to measure the health of the all-important consumer. Geo-Political issues remain front and centre of the coming weeks trade.

Disclaimer: The details expressed in this website and accompanying documents or transmissions are for information purposes only and are not intended as a solicitation for funds or a recommendation to trade. Collinson Forex Ltd accepts no liability whatsoever for any loss or damages suffered through any act or omission taken as a result of reading or interpreting any of the information contained or related to this site

For more on Collinson FX the latest update click here now

Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |

Related Articles

Collinson FX: July 10: "Wait and see"
This is more a ‘wait-and-see policy' than a ‘job-done', as the NZ economy remains on struggle street The RBNZ followed the lead of the RBA and left rates unchanged. This is more a ‘wait-and-see policy' than a ‘job-done', as the NZ economy remains on struggle street. Posted on 10 Jul
Collinson FX: July 1: US Equities hit record high
TheCanadian Government could not hit reverse gear fast enough, on their brand new digital tax The Canadian Government could not hit reverse gear fast enough, on their brand new digital tax, following Trump shutting down trade negotiations. Posted on 30 Jun
Collinson FX: June 27: Confidence builds in US
The US Dollar has been tumbling, as the need for a safe haven dissipates. Focus back on Trade Wars. US equity markets continued to rally as confidence builds. The US Dollar has been tumbling, as the need for a safe haven dissipates, while trade wars come back into focus. Posted on 27 Jun
Collinson FX: June 18: Markets tumble again
Markets tumbled again overnight, with the Israeli war on Iran, totally pre-occupying markets. Markets tumbled again overnight, with the Israeli war on Iran, totally pre-occupying markets. The war rages on, with devastating air attacks launched and received, from both sides. Posted on 18 Jun
Collinson FX: June 13: Xi bounces agreement
Xi bounces trade agreement that was a great deal for USA but very unfavourable to China. Reservations remain over the latest rendition of the US/China Trade Agreement. Trump announced it was a ‘done deal' and that China would pay tariffs of 55%, while the US would pay only 10%. This was not signed off in by President Xi. Posted on 14 Jun
Collinson FX: June 6: EU cuts rates
President Trump held an important phone conversation with Chinese President Xi. Trade wars were the market focus, once again overnight, as President Trump held an important phone conversation with Chinese President Xi. Posted on 6 Jun
Collinson FX: May 30: Trump in Court battles
Markets were shaken by the latest court order (latter upset on Appeal), in the USA. Markets were shaken by the latest court order (latter upset on Appeal), in the USA, by the US Court of International Trade. This effectively halted the Trump tariffs and was a boost to many Countries, that do not have a trade agreement with the USA Posted on 29 May
Collinson FX May 26: Trump Tariff movie hits EU
Trump's "Art of the Deal" trade wars movie gets released in Europe with a 50% opener on Sunday. Market sentiment turned negative, over the weekend, following the announcement of tariffs on the EU. President Trump announced a 50% tariff on all EU products, commencing 1st of June Posted on 26 May
Collinson FX May 22: USD down, others rise
The US Dollar weakness is a result of concerns surrounding the US economy and US growth. The EUR topped 1.1300, while the GBP broke back above 1.3400. The US Dollar weakness is a result of concerns surrounding the US economy and US growth. Moody's downgraded the US credit rating and economic data has been weak. Posted on 22 May
Collinson FX May 16: Tariffs depress inflation
Markets began to trade according to economic data releases, rather than fears held over global trade The latest US PPI was softer than expected, joining the last CPI inflation reading, confirming the tariffs have not raised inflation, but in fact the opposite. Posted on 16 May