Please select your home edition
SW newsletters (top)

Collinson FX: May 5, 2020 - Going through the Lockdown Gears

by Collinson FX 4 May 22:39 PDT 1 May 2020
From the pre-Social distancing World - Post Regatta Prizegiving - 2020 Mahurangi Regatta - Mahurangi Cruising Club - January 25, 2020 © Richard Gladwell /

Collinson FX: May 15 2020 - Going through the Lockdown Gears

'Sell in May, go away' appears to be holding true, despite a strong rally in April, as Western economies return to work. The coronavirus has taken its toll on the global economy and many are looking to apportion blame. China has been recognised as the genesis of the pandemic and it looks as though repercussions may include trade sanctions. The global economy does not need further disruptions to trade and dislocation of the existing supply chain. The EUR managed to regain 1.0900, while the GBP traded 1.2425, as the region moves past the peak virus impact.

Rising trade tensions threaten the trade exposed commodity currencies, as retaliation towards China may include tariffs. The AUD has fallen back to 0.6420, while the NZD holds 0.6030, as nervous markets watch the transition of the economies through the lock-down gears. The relative success of the lock-downs, will determine how quickly these economies re-open and recover. Markets will await the latest musings of the RBA.

The US and Europe are in various stages of re-opening and infection rates will determine the success, along with economic growth data.

Collinson FX: May 4, 2020 - Trump takes on China

April was a month of record gains on equity markets, but risk off sentiment prevailed, to close out the week. President Trump looks to be taking the Chinese Communist Party to task over the spread of the coronavirus globally. Trump has said he suspects the virus came from a laboratory in Wuhan, China. Trump also asked the question 'why the communist party closed travel between Wuhan and the rest of China and not the world'? Larry Kudlow, key Trump financial advisor, said the Chinese will be held accountable. This rhetorical language boosted speculation of a trade war between China and the USA, which lead markets lower to close the week out.

The coming week will be dominated by news of the success or failure, as global economies reopen. The RBA and Bank of England both release monetary policy statements in the coming week, but action will be confirmation of well set out intentions. Markets have been dominated by treatments and the contribution to the' control and containment' of the coronavirus.

It does appear that the US and allies, will attempt to hold the Chinese accountable for the virus. The Chinese Communist Party are fighting back and refusing to accept financial responsibility for the world-wide pandemic. It is a media and culture war that will be fought out and the narrative will be hotly contested. The economic impact has yet to be determined but the conflict appears to be growing.

Catch the new look Collinson FX website at

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

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

Related Articles

Collinson FX: June 30 - Markets shrug off numbers
The AUD trades around 0.6850, while the NZD attempt to hold 0.6400, in the face of a rising reserve. The economic data is coming off record lows, reflecting the various re-opening of economies, across the world. NZ and Australian infection levels re-emerged, contradicted the narrative of ‘defeating the virus' Posted on 30 Jun
Collinson FX: June 24 - Turnaround in Australia
NASDAQ surged to new record highs, boosted by stronger PMI data in Europe, Australia and the USA. The NASDAQ surged to new record highs, boosted by stronger PMI data in Europe, Australia and the USA. The Dollar continued to drift lower, with the EUR rising to 1.1300, while the GBP broke back above 1.2500. Posted on 24 Jun
Collinson FX: June 16 - Chinese spike starts scare
Chinese cases spiked up and fears over a second wave swept Asian markets, which flowed through to EU NZ and Australia have achieved ‘control and containment' of the virus, but they remain vulnerable to fears over a ‘second wave', while exposed to China trade repercussions. Posted on 16 Jun
Collinson FX: June 11 - Riots distract from China
The NZD spiked to 0.6570, following the Fed's announcement, while the AUD rallied strongly to 0.7050 Markets are caught in a short term economic euphoria, with the re-opening of global economies, but significant risks remain. Posted on 11 Jun
Collinson FX: May 29 - Massive Bull run underway
Markets have been on a massive bull run, ignoring the Chinese threat to global trade Markets have been on a massive bull run, ignoring the Chinese threat to global trade, reinforcing the prospect of a ‘V' shaped recovery. Global economic data has been so historically bad, it can only get better, supporting market moves. Posted on 30 May
Collinson FX: May 22 - Economies open successfully
The NZD fell back to 0.6115, while the AUD slipped to 0.6560, damaged by extremely weak flash PMI Markets drifted lower overnight, after posting record gains during a strong week supported by ‘vaccine progress' and Central Bank support. Economies across the world are re-opening successfully, without any major outbreaks in the coronavirus. Posted on 22 May
Collinson FX: May 1 - Reality hits Europe states
NZD jumped to 0.6135, as the RBNZ relaxed lending (LVR) ratios The shine came off the market recovery overnight, as reality sets in. The ECB left rates unchanged and announced they were fully prepared to act ‘as long as needed'. Posted on 1 May
Collinson FX: April 27 - Certainty returns
Certainty back in to markets and authorities can now plan the return of economic activity. The pandemic rolls on, but it appears to under control and contained. This allows certainty back in to markets and authorities can now plan the return of economic activity. Posted on 27 Apr
Collinson FX: April 15 - NZ Exit strategy MIA
Markets finished the week strongly, with US equities rebounding from March lows US market's rebound continues. The NZD lock-down is far more severe and no planned date for an exit strategy, has disappointed markets, pushing the NZD back to 0.6080, despite the weaker reserve. Posted on 15 Apr
MBW newsletters (top)