Please select your home edition
Edition




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.

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: 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
Collinson FX: March 15: Europe markets positive
European markets opened the week on a positive note, as hopes of a ceasefire in the Ukraine grew European markets opened the week on a positive note, as hopes of a ceasefire in the Ukraine grew, with another meeting of negotiators taking place. Posted on 14 Mar
Collinson FX: March 14- Russian sanctions hit hard
The sanctions imposed on Russia are impacting global markets hard. Markets closed lower Friday, to close out a week of losses, on equity markets.US CPI came in at 7.9%, a new record high, for the last forty years. This can only deteriorate further. Posted on 13 Mar
Collinson FX: Dec 29 - More helicopter money
The helicopter money is coming thick and fast. Markets appreciated the fiscal stimulus The helicopter money is coming thick and fast. Markets appreciated the fiscal stimulus and equities rallied strongly. Posted on 28 Dec 2020
Collinson FX: Dec 3 - Australia on improve
Australian GDP jumped more than expected, 3.3% for the quarter and reduced the annualised contractio Australian GDP jumped more than expected, 3.3% for the quarter and reduced the annualised contraction to 3.8%. Posted on 3 Dec 2020
Collinson FX: Vaccine Rally stalls
Growth will continue to be challenged, as the recent European lock-downs, feed through to the data Growth will continue to be challenged, as the recent European lock-downs, feed through to the economic data. Posted on 18 Nov 2020
Collinson FX: Oct 19 - Election win anticipated
The election victory was anticipated by markets, but the magnitude of the victory was not. Labour won the NZ election in a landslide. The victory was anticipated by markets, but the magnitude of the victory was not. Posted on 19 Oct 2020
Collinson FX: Oct 6 - Oz tax cuts expected sooner
Australia is expected to bring forward tax cuts and other stimulus measures Equities opened the week strongly, after the shock hospitalisation of President Trump, last week and his subsequent recovery Posted on 6 Oct 2020
Collinson FX: Sept 18 - NZ in deep recession
NZ GDP data contracted 12.2% for the quarter, better than expected but confirming a deep recession. The Fed also assured markets that interest rates would remain at historical low levels, for years to come, encouraging investors. NZ GDP data contracted 12.2% for the quarter, better than expected but confirming a deep recession. Posted on 18 Sep 2020