Please select your home edition
Edition
SW newsletters (top)




Collinson FX: October 19 - Election win anticipated by markets, focus switches to US

by Collinson FX 18 Oct 21:11 PDT 19 October 2020
National Maritime Museum - Auckland - October 20, 2020 © Richard Gladwell / Sail-World.com

Collinson FX: October 19 - Election win anticipated by markets

US Retail Sales jumped 1.9%, better than the 0.7% expected, giving markets a boost to close out a lacklustre week. Markets spent a week dogged by the resurgence of the virus in Europe and suspension of two of the vaccine trials. US markets have been distracted by the lack of a further stimulus from House Leader Pelosi. The refusal of the House to negotiate will be moot, after the election, which will deliver fiscal stimulus post-election. The lack of action and weaker markets saw a safe-haven US Dollar revival. The EUR has fallen back to 1.1700, while the GBP has traded back to 1.2920, as the resurgent virus triggers Governmental restrictions.

The rising Dollar has forced the commodity currencies lower, with the AUD falling below 0.7100, while the NZD toys with 0.6600. There will be a lot of volatility in the markets, in the lead up to the US Presidential elections, while local markets will be impacted by the NZ election. Economic data will reflect the re-opening of global economies, although European markets are being severely damaged, by the resurgent virus.

Labour won the NZ election in a landslide. The victory was anticipated by markets, but the magnitude of the victory was not. The currency will likely be fairly stable although the prospect of a Labour Government usually brings downside pressure to the currency. The focus now turns to a fast approaching US Presidential election, which has probably never been more important, with President Trump set to confound the polls again?

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: 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
Collinson FX: Oct 14 - Drop expected post-Election
NZ House prices surged, due to lack of supply and cheap mortgages. Credit card spending surges 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. Posted on 14 Oct
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
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
Collinson FX: Sept 4 - US markets blow out
Australian trade data revealed a sharp increase in imports, accentuating a trade imbalance US Equity markets experienced a ‘blowout correction' overnight, lead by a crash in ‘stay-at-home' tech shares. This may a bit of a flash in the pan or, if extended, may become a significant market correction. Posted on 4 Sep
Collinson FX: August 20 - China US election issue
The AUD fell back below 0.7200, while the NZD traded 0.6570, both being impacted by lock downs Maersk, the largest shipping company in the world, reported much better than expected earnings. This is a great sign for global trade, as the economic recovery progresses forward. Posted on 20 Aug
Collinson FX: August 5 - Global equities climb
Australian downturn not as bad as expected, but Victorian lockdown has a ‘major impact' AUD trading up to 0.7150, while the NZD tests 0.6600 on the downside. RBA Governor said that the economic downturn was not as severe as originally feared, but warned the Victorian lockdown was having a ‘major impact'. Posted on 5 Aug
Collinson FX: July 31 - US GDP drops like a rock
Pandemic impact on global economies is dramatic and none more so, than growth numbers and inflation. The pandemic is a big threat to economic re-opening and progress. The impact on global economies is dramatic and none more so, than growth numbers and inflation. US GDP contracted a shocking 32.9% for the June Quarter! Posted on 31 Jul
Collinson FX: July 22 - EUR agrees 7 year budget
EU passed a massive bailout/stimulus package, after a record five day meeting The EU passed a massive bailout/stimulus package, after a record five day meeting and heavily contested negotiations. The EU agreed to a EUR$750 Billion bailout, which is a heady mix of grants and loans to members heavily impacted by the pandemic. Posted on 22 Jul
MBW newsletters (top)