Collinson FX: October 14 - Downward pressures expected after NZ Election

by Collinson FX 14 Oct 2020 03:37 PDT 14 October 2020

MRX - NZ Keelboat Nationals - October 3, 2020 © Richard Gladwell / Sail-World.com

Collinson FX: October 14 - Downward pressures expected after NZ Election

Coronavirus surges in Europe and a weak ZEW Economic Sentiment report dampened market enthusiasm overnight. The IMF reviewed global growth forecasts higher, but the surge in the virus and economically restrictive measures employed to combat them, impacted markets. The EUR slipped back to 1.1735, while the GBP crashed to 1.2930, as virus surges and trade talks with Europe continued to flail.

The Chinese have effectively imposed a ban on Australian coal, as the political war between the two trading partners escalates, although the trade numbers continue to reflect massive improvements? This did little for the AUD, which fell back to 0.7150, while the NZD attempted to hold 0.6630. NZ House prices surged, due to lack of supply and cheap mortgages, leading to a surge in credit card spending. The local election on Saturday should provide further downward pressures coming to bear.

ASCC training on the Waitemata Harbour - October 3, 2020 - photo © Richard Gladwell / Sail-World.com

Collinson FX: October 13 - EU economy losing momentum as virus surges

US equity markets closed out a huge week of gains, in the week just gone and built on that to open another week. Stocks surged despite the lack of progress on the fiscal bail-out/stimulus package from the US Congress. ECB warned that the EU economy ‘was losing momentum’ and in danger of falling into an even deeper recession, while the virus continues to surge across member nations. Lock-downs have been rejected a weapon to fight the virus, due to the economic destruction it has already caused, but localized measures are being implemented in Spain and the UK. The EUR drifted back to 1.1800, mired in the gloom, while the GBP pushed up to 1.3060.

The rise in equity markets is the direct result of monetary largesse and extreme Central bank policy, across the globe. The rise can only be interrupted by an extreme and negative event, which has permitted the safe haven US Dollar to recede. This has allowed commodity currencies some sort of a recovery, with the AUD holding 0.7200, while the NZD drifted below 0.6650. These currencies will be driven by global markets, although this weeks National election in New Zealand, may have some impact on the local currency.

Catch the new look Collinson FX website at www.collinsonco.com

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: Apr 11: US interest rates to drop
The RBNZ left rates unchanged in NZ, but talked a big game, about holding rates higher The RBNZ left rates unchanged in NZ, but talked a big game, about holding rates higher and squeezing out inflation. This has the desired impact on the NZD, which initially pushed upwards, but the news from the US on inflation, destroyed that narrative. Posted on 11 Apr Collinson FX are at the Hutchwilco Boat Show
Collinson Forex, a prominent financial services company, is at the Hutchwilco NZ Boat Show Collinson Forex, a prominent financial services company, is making a notable presence at the NZ Boat Show in Auckland from the 18th-21st of May, demonstrating their commitment to the industry. Posted on 19 May 2023 Collinson FX: Jan 20: No change with PM's exit
The NZ ‘PM of Aotearoa' resigned yesterday, which had little impact on the currency. The NZ ‘PM of Aotearoa' resigned yesterday, which had little impact on the currency, as this will have little impact on the NZ economy. Posted on 19 Jan 2023 Collinson FX: Dec 5 - Risk appetite rallies
US Federal Reserve Chairman confirms the rate of future interest rate rises may slow US Federal Reserve Chairman confirms the rate of future interest rate rises may slow, as early as December. Posted on 5 Dec 2022 Collinson FX: Sept 30 - A finger in the dyke
Inflation remains the big problem haunting Central banks across the Western world The Bank of England in an effort to combat the reckless unfunded UK Government's fiscal spendathon mini-budget, kept bond yields lower but is a finger in the dyke. AUD crashed back to 0.6450, while the NZD plunged to 0.5650 Posted on 29 Sep 2022 Collinson FX: June 15 - 'Bear' territory
Markets are crashing across the Western world, with equities charging into ‘bear market' territory Markets are crashing across the Western world, with equities charging into ‘bear market' territory, while crypto's collapse. Posted on 14 Jun 2022 Collinson FX: June 14: Equity markets routed
The rout on equity markets continued overnight, to open the new trading week and spread The rout on equity markets continued overnight, to open the new trading week and spread to bond and currency markets Posted on 13 Jun 2022 Collinson FX: April 22: Markets react to inflation
Equity markets turned sour overnight, following strong recent gains Equity markets turned sour overnight, following strong recent gains, as markets look to consider the inflationary consequences across Europe and the US. Market realisation of the devastating impact of inflation and surging interest rates, is coming. Posted on 22 Apr 2022