Collinson FX market Commentary: February 27, 2014 Click here to find out how to get CollinsonFX's free iPhone app
US New Home Sales jumped to a 5 year high, increasing 9.6%, and reversing recent trends. The improved data was enough to spur equities higher and boost the Dollar. A reversal in economic conditions may have tempted Fed President, Yellen, to stall tapering and this may have removed the temptation.
The Dollar rallied strongly, with the EUR falling to 1.3670 and the GBP back to 1.6640. German Consumer Confidence improved to 8.5, from 8.3, and GDP growth in the UK hit 2.7%. European conditions are slowly improving but this will not assist the currency as the Dollar books gains without QE Infinity.
The rise in the reserve currency pushed associated currencies lower, with the AUD dropping below 0.8950 and the KIWI below 0.8300.
The release of NZ Trade Data today will be watched closely and is expected to support the 'rock star economy' status although the currency direction continues to be driven by macro-economic conditions. Collinson FX market Commentary: February 25, 2014
The week began on a positive note, with lots of platitudes from the G20, promising Global growth and a recovery for all!
Markets have ignored the recent string of weak economic data, excused by the extreme winter weather conditions in the US, and taken heart from Yellen's promising continued tapering.
'Beware the Wolf in Sheep's clothing!' The EUR slipped back to 1.3725, after benign CPI data, confirming little in the way of measured inflation. The GBP is trading around 1.6600 and remains susceptible to reserve currency moves. Confidence continues to drive commodities higher and the associated currencies.
The AUD is attempting to mount 0.9000 again and the KIWI has breached 0.8300, with local Credit Card spending continuing to rise, supporting growing consumer confidence in the 'rock star' economy. Direction will continue to come from US data and Central Bank commentary. For more on Collinson FX and market information see:
www.collinsonfx.com and www.collinsonwealthmanagement.com
Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 | 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.