MarineBusiness-World.com
 
 
News Home FishingBoating Photo Gallery Australian Cruising Sail-World Australia
Sail-World.com : Collinson FX Market Commentary: June 28, 2014 - Directional changes
Collinson FX Market Commentary: June 28, 2014 - Directional changes

'Whitbread Round the World race winner, Steinlager II (NZ Sailing Trust) - Start ANZ Fiji Race, June 7, 2014'    © Richard Gladwell    Click Here to view large photo

Collinson FX market Commentary: June 28, 2014

Click here to find out how to get CollinsonFX's free iPhone app

Equity markets closed on record highs again with a delusional belief in an economic recovery but a massive mountain of Central Bank liquidity expanding the equity bubble. French GDP growth slipped back to zero, confirming the absence of an economic recovery, while the UK managed 0.8% growth with an annual rise of 3% GDP.

The GBP is in recovery mode as they have avoided the disaster of the EURO and battle back slowly to a recovery. Europe remains under extreme pressure and the ECB and single currency fundamentally flawed, detroying any chance of a robust economic recovery. The GBP holds above 1.7000 and the EUR trades 1.3650.

The week ahead has many reasons for some quantum directional changes, with important Employment data out in the US, while the ECB and RBA rate decisions ensure Central Banks dominate. This should be a massive week, but shortened, with the Independence Day holiday on Friday in the USA!

Steinlager II (NZ Sailing Trust) heads out of the Waitemata Harbour, 2014 ANZ Fiji Race start -  © Richard Gladwell   Click Here to view large photo

Collinson FX market Commentary: June 27, 2014

The control Central bankers have over markets was on full display overnight with the Bank of England Governor Carney and Fed member, James Bullard, driving market sentiment. In the UK the Governor clarified earlier comments and signalled the Bank was ready to end 'QE' turning the cycle direction.

The GBP regained some lost momentum and surged to back through 1.7000,leapfrogging the EUR, which struggled to hold 1.3600. In the US, Bullard, frightened markets with a commentary warning of interest rate rises as early as the first quarter of 2015! He pointed to targets being met, in terms of both Inflation and Employment, and foreshadowed a rising interest rate environment. Stocks moved lower,at the prospect, but he is a non voting member while Yellen remains a staunch Dove.

The KIWI is flying high, moving up to 0.8770, fuelled by the growing and attractive interest rate differentials. RBNZ Governor Wheeler is suffering collateral damage from his hawkish and presumptuous monetary policy moves. This has long been an error of NZ Central Bankers, acting without patience, thus causing unnecessary volatility and pressures on the currency.

The trade data will be released today and the higher costs of capital will impact economic activity and adversely impact trade through a surging currency. The AUD is hovering around 0.9400 and without domestic pressures remains susceptible to external pressures..

Steinlager II (NZ Sailing Trust) - Start ANZ Fiji Race, June 7, 2014 -  © Richard Gladwell   Click Here to view large photo

Collinson FX market Commentary: June 26, 2014

A horrific US GDP number failed to quell the enthusiasm investors have for equities. The avalanche of liquidity, provided by Central banks, means that it has to go some place and equities are the place of least resistance. Shares continue to provide attractive returns compared with bonds.

The first quarter GDP was revised back from a contraction of 1%, to almost unbelievable negative 2.9%, a five year low and a contradiction to the economic recovery conspiracy theorists!? This completely busts the recovery premise, although markets shrugged this off, as historical data and a one off due to weather conditions and Obamacare.

Durable Goods Orders also contracted 1% and economic progress seems to have hit the proverbial wall. The EUR inched back,with attractive yields, overcoming the train crash that is the single market. The Currency rebounded above 1.3625, while the GBP slipped below 1.7000, in a reversal of recent trends. The AUD drifted back below 0.9400, after the political contradiction of the year, confused many and not just in Australia!

Mining billionaire and balance of power holder, Clive Palmer, announced an apparent ' road to Damasacas' moment. Al Gore, Global Warming fanatical alarmist and crusader, appeared with Clive and endorsed his policies!

Palmer announced the end to the Greens holy grail, the carbon tax, but announced retention of some climate measures and the dream for an ETS. This is comedy hour and further destroys the reputation of Gore appearing with the confused bull, charging through the Australian political china shop, wreaking havoc.

The KIWI regained yesterday's losses and surged back to 0.8730 with interest rate differentials providing incentives to international investors. The gloss will start to fade on the global rock star economy as the misguided and deluded RBNZ impacts the economy with aggressive and destructive interest rate hikes.

Steinlager II (NZ Sailing Trust) - Start ANZ Fiji Race, June 7, 2014 -  © Richard Gladwell   Click Here to view large photo

Collinson FX market Commentary: June 25, 2014

Equities were mixed again overnight but were perched at record levels due to growing economic confidence. The hand brake is the Geo-Political developing crises in the Middle East and the Ukraine. The Middle East has the ability of igniting the whole region which would be catastrophic for oil and the global economy. The Ukraine has the potential to impact an already impaired European economy.

German IFO Business Confidence slid overnight with the Dollar reversing recent losses as the EUR slipped below 1.3600. The Bank of England failed to inspire confidence and halted recent gains in the currency as the GBP slipped back to 1.6970. Housing numbers finally gave markets some hope in the US after yesterday's gains in Existing Home Sales were reinforced by New Home Sales and Home Prices. NHS leapt 18.6% and S&P prices rose 10.80%! Consumer Confidence also jumped confirming recent data.

Surprising then that equities did not continue the inexorable march upwards? The Geo-Political issues remain the threat with the disturbing GDP numbers also spreading some nerves. Philly Fed President, Plosser, observed economic targets were approaching faster than expected thus lending some support for the Dollar. The commodity currencies also slipped due to gains in the Reserve. The AUD gave up 0.9400 and the NZD slipped below 0.8700.

Steinlager II (NZ Sailing Trust) - Start ANZ Fiji Race, June 7, 2014 -  © Richard Gladwell   Click Here to view large photo

Collinson FX market Commentary: June 24, 2014

Equity markets drifted off last weeks record highs with fears over Geo-Political crises undermining recent gains. Chinese Manufacturing expanded back above the all-important '50' mark, rising from 49.4 to 50.8. This boosted Asian markets and the associated commodity currencies with the AUD rallying back above 0.9400.

The NZD also managed gains supported by improving Credit Card spending boosting retail but rising interest rates should impact the consumer. The KIWI holds 0.8700. European markets fell after manufacturing and services PMI dropped lower in France, Germany and the EU. Hardly surprising for the socialist basket case that is the bureaucratic lead EU and the ECB!

The EUR traded around 1.3600, reflecting the state of the single market, while the GBP battled back to 1.7025. The gloom spread to the US with Iraq and the Ukraine both threatening global disruption. Existing Home sales rose 4.9% and manufacturing also booked gains but the wall of bad news threatens to overwhelm. All eyes remain on the the emerging crises and any major distortions in economic data releases.

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.


by Collinson FX


  

Click on the FB Like link to post this story to your FB wall

http://www.marinebusiness-world.com/index.cfm?nid=123874

12:41 AM Mon 30 Jun 2014GMT


Click here for printer friendly version
Click here to send us feedback or comments about this story.

Click for further information on
2011 Collinson & Co

Related News Stories:

27 Jun 2014  Collinson FX Market Commentary: June 27, 2014 - KIWI flies high
26 Jun 2014  Collinson FX Market Commentary: June 26, 2014 - KIWI climbs back
26 Jun 2014  Collinson FX Market Commentary: June 25, 2014 - AUD up KIWI down
25 Jun 2014  Collinson FX Market Commentary: June 24, 2014 - AUD picks back up
22 Jun 2014  Collinson FX Market Commentary: June 21, 2014 - KIWI climbs ladder
20 Jun 2014  Collinson FX Market Commentary: June 20, 2014 - NZ GDP improves
20 Jun 2014  Collinson FX Market Commentary: June 19, 2014 - KIWI Up AUD Down
19 Jun 2014  Collinson FX Market Commentary: June 18, 2014 - AUD loses ground
17 Jun 2014  Collinson FX Market Commentary: June 17, 2014 - KIWI's meteoric rise
14 Jun 2014  Collinson FX Market Commentary: June 14, 2014 - RBNZ pumps KIWI up
MORE STORIES ...




Marine Business News













UK superyacht industry on the rise by British Marine Federation,


















Predictwind helps you pick the best time to depart by Richard Gladwell Sail-World.com/nz,




































Carla Demaria named keynote speaker for METS 2014
Learn about life beneath water at Gold Coast International Marine Expo
FIXMYBOAT.com.au – Browse, compare and decide
Boat Shows - the engine powering the boating industry
'Honey, Let's Go Boating!' next best-seller for Finkelstein *Feature
2014 Brisbane Boat Show - Set to add new features
Collinson FX Market Commentary: July 19, 2014 - Step into Wonderland
European Commission to take UK to court over red diesel
Understanding the Ocean's role in Greenland Glacier melt
America's Cup: Updates on Team Australia withdraw
2016-2017 America's Cup - Team Australia withdraws
Collinson FX Market Commentary: July 18, 2014 - AUD moves up
Collinson FX Market Commentary: July 17, 2014 - KIWI takes hammering
Revealing report on Search for American yacht Nina released *Feature
ECOfishers and AMA to establish NSW Fisheries Taskforce
PredictWind's Weather Routing opens your navigation options - try it!
Collinson FX Market Commentary: July 16, 2014 - Oz confirms low rates
Cameron Appleton joins North Sails
National 4x4 Outdoors Show - Unprecedented exhibitors expected
New-to-New Zealand products at the Auckland On Water Boat Show
Auckland on the Water Boat Show: Two new Bavaria yachts on display   
AYSS PacificNet/Tahiti voted a success!   
Collinson FX Market Commentary: July 15, 2014 - Rising interest hits   
July 2014 edition of Finnfare has been published   
Taiwan's first marina a Superior effort *Feature   
Vaavud launches generation 2 wind meter   
Research highlights marinas economic, social and environmental benefit   
Solar 1 Monte Carlo Cup 2014 - Monaco sunshine new fuel for motorboats   
Hamilton Island Audi Race Week 2014 - Accommodation options   
Rio cleaning up its act in the lead up to Olympic sailing test event *Feature   
Collinson FX Market Commentary: July 12, 2014 - KIWI heads to 90c   
National Squib Owners Association and Rondar Raceboats join forces   
Collinson FX Market Commentary: July 11, 2014 - Portugal bank defaults   
Sydney International Boat Show updates   
Portland’s new state-of-the-art boat ramp officially opened   
Collinson FX Market Commentary: July 10, 2014 - KIWI hits higher   
SECUMAR appoint new sales director   
Collinson FX Market Commentary: July 9, 2014 - New stat pushes ANZACs   
Your invitation to the Seawind 1160 LITE World launch   
APSNZ appoints Duthie Lidgard as new MD   


For this week's complete news stories select    Last 7 Days
   Search All News
For last month's complete news stories select    Last 30 Days
   Archive News





Sail-World.com  


















Switch Default Region to:

Social Media

Asia

Australia

Canada

Europe

New Zealand

United Kingdom


http://www.sail-world.com/event_images/image/Twitter_logo_small.png http://www.sail-world.com/event_images/image/FaceBook-icon.png  http://www.sail-world.com/event_images/image/RSS-Icon.png

United States

Cruising Northern

Cruising Southern

MarineBusiness World

PowerBoat World

FishingBoating World

 

Contact

Commercial

News

Search

Contact Us

Advertisers Information

Submit news/events

Search Stories/Text

Feedback

Advertisers Directory

Newsletter Archive

Photo Gallery

 

Banner Advertising Details

Newsletter Subscribe

Video Gallery

Policies

 

 

 

Privacy Policy

 

 


Cookie Policy

 

 



This site and its contents are © Copyright TetraMedia and/or the original author, photographer etc. All Rights Reserved.  Photographs are copyright by law.  If you wish to use or buy a photograph contact the photographer directly.
XLXL NEW MBW
LocalAds   DE  ES  FR  IT