Collinson FX Market Commentary - July 6 - Canary in mine shaft again?

by Collinson FX on 6 Jul 2016

Crusader - ANZ Fiji Race Start - June 4, 2016 Richard Gladwell www.photosport.co.nz

Collinson FX Market Commentary - July 6 - Canary in mine shaft again?

July 6 - Bond yields are nestling on record lows, which is a canary in the mine shaft, raising levels of concerns in equities. Share markets gave up ground, while uncertainty drove the Dollar and Yen higher, with macroeconomics taking centre stage.

The JPY traded 101.75, while the EUR slipped to 1.1070, with the GBP headlining with 30 year lows. The GBP is now testing 1.3000, so investors taking a punt on a recovery post-Brexit, hold on! Commodity currencies suffered the resurgent Dollar, with the RBA declining any actions, resulting in a steady currency until the declining reserve hit.

The AUD traded strongly in local trade, despite the political flux, holding 0.7500. The flight to safety of the Dollar impacted in overnight trade pushing the AUD back below 0.7450, while the KIWI slipped back to 0.7130. Global conditions remain weak and the Avalanche of data this week will confirm the state of play.

TeamVodafoneSailing shows as much action as an AUS/GBR Election outcome - ANZ Fiji Race Start - June 4, 2016 © Richard Gladwell www.photosport.co.nz

Collinson FX Market Commentary - July 5 - Elections but no Decisions
July 5 - The July 4th long weekend in the USA has ensured a very quiet start to the week despite the political situations evolving around the world. Upheaval, turmoil and uncertainty are becoming the new norm. Nigel Farage, UKip leader and major Brexit advocate, has now resigned....'mission accomplished'!

The battle continues for the leadership of the ruling Tory party, while Labours Corbyn clings bitterly to the leadership despite the parliamentary party rejection!

In Australia, limbo prevails, while the scrutineers take a well earned break?! A dozen decisive seats remain uncounted ensuring no result but the election counting was halted for two days. It will resume today but a result may take a few days. Furious negotiations will commence, as a hung parliament is in the wind, providing further uncertainty.

Australian equity markets were steady, despite threats from ratings agencies regarding the looming deficit/debt challenges, while the AUD rallied towards 0.7530. The KIWI complimented this move, testing 0.7200 on the upside, a product of a settling reserve. The GBP looked to regain 1.3300, while the EUR traded 1.1150, as markets stabilized, adjusting to the new norm!

For more on Collinson FX and market information click here and here Or for the latest update click here

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

If you want to link to this article then please use this URL: www.sail-world.com/146182

Related Articles

Collinson FX November 11: Feel good US economy
US Federal Chairman says he is ,‘feeling good' about the US economy Markets continued to rally, following the huge wave of positive sentiment from the election of President Trump. The Fed unanimously voted to cut a further 25 basis points. US Federal Reserve Chairman, that he was ‘feeling good' about the US economy.
Posted on 11 Nov Collinson FX June 7: ECB cuts rates
ECB (European Central Bank) cuts rates for the first time in five years, more cuts expected The ECB (European Central Bank) cuts rates for the first time in five years, as expected, offering relief to borrowers. Markets anticipate that the ECB will cut again, at least once, this year.
Posted on 10 Jun Collinson FX: OCR hold lifts NZD
RBNZ was hawkish, citing inflationary pressures, in their decision not to change the Cash Rate RBNZ was hawkish, citing inflationary pressures, in their latest decision to leave interest rates at these elevated levels, until at least next year. That had the same impact on the currency, with the NZD rallying strongly following the RBNZ rate decision
Posted on 22 May Collinson FX: Jan 20: No change with PM's exit
The NZ ‘PM of Aotearoa' resigned yesterday, which had little impact on the currency. The NZ ‘PM of Aotearoa' resigned yesterday, which had little impact on the currency, as this will have little impact on the NZ economy.
Posted on 19 Jan 2023 Collinson FX: Dec 5 - Risk appetite rallies
US Federal Reserve Chairman confirms the rate of future interest rate rises may slow US Federal Reserve Chairman confirms the rate of future interest rate rises may slow, as early as December.
Posted on 5 Dec 2022