Collinson FX market Commentary: March 5, 2014 Click here to find out how to get CollinsonFX's free iPhone app
Relief spread across resurgent equity markets as Putin evoked calm, reassuring many, that the Ukraine situation was not likely to explode. Putin expressed disdain for the US and their role in instigating revolution.
Blame was squarely apportioned to Western influence in a situation they do not understand. He asserted actions in the Crimea was to protect citizens and reserved the right to do so in other parts of the Ukraine.
Equities surged as Geo-Political events dominated markets and volitility will remain. The EUR was steady at 1.3730 and the GBP remained 1.6670. The RBA left rates unchanged but continued to jawbone the currency lower. The currency held fast and looks to international events and some improvement in local economic conditions to see any drive north.
The AUD traded 0.8930 with the KIWI steady on 0.8375. Geo-Political events will continue to overshadow economic events with Jobs set to dominate US markets when concerns fade. Collinson FX market Commentary: March 4, 2014
Markets were hit hard by the Geo-Political issues evolving in the Ukraine. Russia has invaded the Crimean Peninsula and confined Ukranian troops to their barracks. In new developments, overnight, Russia has demanded Ukrainian surrender of some Naval forces.
Putin is taking advantage of the internal upheaval in Kiev to annex long desired and previously owned territory. It may be that he is satisfied with the semi-Autonomous zone, but he has ambitions to expand the Russian Federation.
Markets do not appreciate the upheaval and equities plunged globally, ignoring economic data. The flight to safety reversed recent weakness in the USD with the EUR falling back to 1.3735 and the GBP slipping to 1.6660. European Manufacturing PMI was steady but this was largely ignored. US Manufacturing expanded from 51.3 to 53.2 and Personal Income and Expenditure also booked gains.
Chinese Manufacturing continued to contract undermining confidence in commodity currencies.
The AUD plunged below 0.8900 but regained some lost ground overnight, moving back to trade around 0.8900. The KIWI quietly booked gains but the resurgent Dollar pushed the NZD back to 0.8330.
Turmoil from Europe remains the dominant driver of global markets with upheaval threatening to spread. A close look at the RBA today may have an impact on the currency locally. 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.