MarineBusiness-World.com
 
 
News Home FishingBoating Photo Gallery Australian Cruising Sail-World Australia
Sail-World.com : Collinson FX Market Commentary: June 6, 2014 - Negative deposit rates
Collinson FX Market Commentary: June 6, 2014 - Negative deposit rates

'Taeping - RNZYS Winter Series - May 24, 2014'    © Richard Gladwell    Click Here to view large photo

Collinson FX market Commentary: June 6, 2014

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

Draghi delivers as promised overnight with the ECB launching a super round of monetary stimulus. Central Bank monetary expansionism hit new lows with the bank being the first to offer a negative deposit rate (-0.10%). The ECB promised further asset back purchases and targeted liquidity to the banks in an effort to stimulate lending to the wider economy.

The Bank cut growth forecasts for the year and raised targets for 2015. The lack of growth and the advent of deflation has spurred this radical reaction. The excess of Monetary Policy has reached new levels and shows the desperation of the dysfunctional single currency. Equity bubbles loved the news and stretched to new all-time record highs, while the EUR bounced from lows to 1.3650, on a 'buy the rumour.....' trade. US markets lapped up the stimulus and now look with confidence to tonight's Non-Farm Payroll.

Chinese Composite and Services PMI both jumped supporting commodity demand and aiding the AUD, which continued to climb, back to 0.9330. The KIWI reversed recent weakness, jumping to just under 0.8500, amidst the ECB fallout.

All eyes now turn to US Job numbers and this should settle the weeks direction. This is good news for equities, but once again, for all the wrong reasons!

RNZYS Club Marine Winter Series - May 24, 2014 -  © Richard Gladwell   Click Here to view large photo

Collinson FX market Commentary: June 5, 2014

Nervous equity markets tested record all-time highs, 'prairie-dogging'.The Australian market was set alight early in the trading day with GDP numbers beating expectations. The first quarter GDP came in at a stronger than expected, 1.1%, which translated to an annualised number of 3.5%!

This is strong growth and a boost for the ailing Government still pushing the unpopular budget. The AUD reacted by moving back towards the 0.9300 mark and swimming against the tide. The KIWI remains weak and stalled under the yoke of a repressive interest rate regime, imposed by a delusional Central Banker, who fails to understand the supply side of the equation.

The NZD drifted back to test the 0.8400 on the downside. European and US markets keenly await the much anticipated and telegraphed expansion of monetary policy. Services and Composite PMI measures fell in the Eurozone, steeling Draghi's resolve,and putting downward pressure on the single currency. The EUR dropped below 1.3600, while the GBP held ground, drawing a definite contrast and holding 1.6730. US markets are focused on the ECB decision with an eye on local employment data.

The ADP reported a fall in private sector jobs. Non-Government added 179.000 jobs with expectations for over 200,000. This did not auger well for the all-important Non-Farm Payrolls released tomorrow. The global economy is stuttering and any relapse into recession will be far more grave, as most developed nations are in much worse shape.

Since the GFC Western nations have employed Keynsian economics and extended deficits and accumulated mountains of debt which leaves them less able to fight further shocks. All eyes are now on the ECB and their attempt to stimulate a dysfunctional single market.

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=122992

3:20 PM Fri 6 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:

05 Jun 2014  Collinson FX Market Commentary: June 5, 2014 - KIWI weak and stalled
31 May 2014  Collinson FX Market Commentary: May 30, 2014 - Kiwi economy falters
30 May 2014  Collinson FX Market Commentary: May 29, 2014 - RBNZ blues hit NZ
28 May 2014  Collinson FX Market Commentary: May 28, 2014 - KIWI limps along
28 May 2014  Collinson FX Market Commentary: May 27, 2014 - NZ Trade data falls
25 May 2014  Collinson FX Market Commentary: May 24, 2014 - RBNZ presumptuous
24 May 2014  Collinson FX Market Commentary: May 23, 2014 - ANZAC's down
23 May 2014  Collinson FX Market Commentary: May 22, 2014 -US Interest stays low
22 May 2014  Collinson FX Market Commentary: May 21, 2014 - OZ plunges bigtime
21 May 2014  Collinson FX Market Commentary: May 20, 2014 - Relief rally continues
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,










































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   
Abell Point Marina looking shipshape   
Oceanis 48 at the Sydney International Boat Show   
Bar Crusher's fully-enclosed fishing weapons   


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 WAS MBW
LocalAds   DE  ES  FR  IT