by Collinson FX
2014 Mahurangi Regatta - Classic Yachts January 25, 2014
Collinson FX market Commentary: January 28, 2014, 2013
http://itunes.apple.com/app/collinsonfx/id533360650?mt=8!Click_here to find out how to get CollinsonFX's free iPhone app
Equity markets opened the week vulnerable, after last weeks losses, stemming from fears over the emerging markets and the impact of tapering.
Capital has been pouring out of emerging markets and heading for the perceived strength of the US, which is anticipated to climb in value, as the Fed's tapering program swings into action. Chinese growth has been under pressure, which has impacted commodity prices, accentuated by the rising in the reserve currency.
This has hit the AUD hard, testing lows below 0.8700, although some consolidation is underway, at these levels. The KIWI has been impacted, but not to the extent of the AUD, as Agricultural prices have been fairly resilient.
The NZD has traded around 0.8200, with Auckland closed for Anniversay celebrations and the Australia Day holiday closing markets for the day. US Equities were still in decline with global fears spreading to investors and sentiment was not assisted by New Home Sales crashing a further 7%.
Expectations are high for some GDP growth in the UK and bucked the trend, rising to 1.6575, despite a flailing EUR, trading around 1.3675. The equity correction was always coming, due to the nature of the bubble, and QE tapering appears to be the trigger.
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.