Please select your home edition
Edition
CollinsonCo 728x90 TOP




Collinson FX: Collinson FX: December 29 - More helicopter money

by Collinson FX 29 Dec 2020 10:21 NZDT 29 December 2020
Fully loaded - America's Cup World Series - December 2020 © Richard Gladwell / Sail-World.com

Collinson FX: December 29 - More helicopter money

Markets experienced a post-Christmas rally on the back of President Trump signing the enormous bailout package. This was combined with another Government funding bill, to total over USD$2.3 Trillion! This is in addition to further legislation promised for bailout money of up to USD$2,000 per person. The helicopter money is coming thick and fast. Markets appreciated the fiscal stimulus and equities rallied strongly.

The EUR jumped back above 1.2200, while the GBP crashed back to 1.3450, from the highs pre-Christmas. The EU/UK post-Brexit trade deal sparked a spike in the GBP, following the announcement just prior to Christmas, but the reality was not enough to support the currency. It appears to be a great deal, although there remains criticisms, although it should enable the UK to open up massive potential trade deals across the globe. The British Government have already signed many and now look to the mother of all deals, the USA.

The coronavirus remains an issue, as lockdowns continue across Europe and parts of the US. Political events will come into focus over the next month as the US moves into a transition, to the new administration. This will not be a smooth handover and it may well have implications for markets.

Collinson FX: December 28 - Brexit deal finally agreed

A post-Brexit Trade Deal between the UK and EU was finally agreed, at the 'eleventh hour', as expected. It appears to be a great deal and compromise on the 'fishing issue', has allowed an agreement to be made. The devil will be in the detail. The GBP surged on the news, jumping above 1.3600, while the EUR was steady at 1.2180. The UK has signed numerous deals globally, with the US/UK deal now green-lighted, which will be the mother of all trade deals. The flexibility that a free and independent Britain has now, will facilitate a surge in global trade, away from the insular, inwardly focused EU.

US Markets rallied into Christmas but the anticipated 'Santa Rally' was not forthcoming. The surge in virus cases across Europe and the US has seem massive disruptions and lock-downs. This will massively impact global economies and markets well into 2021. The Christmas/New Year period will be low volume and quiet across global markets. The AUD is attempting to regain 0.7600, while the NZD is trading around 0.7100. The fortunes of the commodity based, trade exposed currencies, remains very dependent on global markets and extremely vulnerable.

The Chinese attempts at trade sanctions have particularly impacted Australia, but signs of self-harm are coming to the fore. China is said to be suffering power shortages from the lack of Australian coal and Australia could further damage the Chinese economy with Iron ore supply, supported by allied trading/political partners?

Catch the new look Collinson FX website at www.collinsonco.com

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

Countries: | NZ: 0800 338 838 | AU: 1800 143 415 | NY: 1888 6257 833 | UK: 0800 0285 834 |

Related Articles

Collinson FX: Dec 3 - Australia on improve
Australian GDP jumped more than expected, 3.3% for the quarter and reduced the annualised contractio Australian GDP jumped more than expected, 3.3% for the quarter and reduced the annualised contraction to 3.8%. Posted on 3 Dec 2020
Collinson FX: Vaccine Rally stalls
Growth will continue to be challenged, as the recent European lock-downs, feed through to the data Growth will continue to be challenged, as the recent European lock-downs, feed through to the economic data. Posted on 18 Nov 2020
Collinson FX: Oct 19 - Election win anticipated
The election victory was anticipated by markets, but the magnitude of the victory was not. Labour won the NZ election in a landslide. The victory was anticipated by markets, but the magnitude of the victory was not. Posted on 19 Oct 2020
Collinson FX: Oct 14 - Drop expected post-Election
NZ House prices surged, due to lack of supply and cheap mortgages. Credit card spending surges NZ House prices surged, due to lack of supply and cheap mortgages, leading to a surge in credit card spending. The local election on Saturday should provide further downward pressures coming to bear. Posted on 14 Oct 2020
Collinson FX: Oct 6 - Oz tax cuts expected sooner
Australia is expected to bring forward tax cuts and other stimulus measures Equities opened the week strongly, after the shock hospitalisation of President Trump, last week and his subsequent recovery Posted on 6 Oct 2020
Collinson FX: Sept 18 - NZ in deep recession
NZ GDP data contracted 12.2% for the quarter, better than expected but confirming a deep recession. The Fed also assured markets that interest rates would remain at historical low levels, for years to come, encouraging investors. NZ GDP data contracted 12.2% for the quarter, better than expected but confirming a deep recession. Posted on 18 Sep 2020
Collinson FX: Sept 4 - US markets blow out
Australian trade data revealed a sharp increase in imports, accentuating a trade imbalance US Equity markets experienced a ‘blowout correction' overnight, lead by a crash in ‘stay-at-home' tech shares. This may a bit of a flash in the pan or, if extended, may become a significant market correction. Posted on 4 Sep 2020
Collinson FX: August 20 - China US election issue
The AUD fell back below 0.7200, while the NZD traded 0.6570, both being impacted by lock downs Maersk, the largest shipping company in the world, reported much better than expected earnings. This is a great sign for global trade, as the economic recovery progresses forward. Posted on 20 Aug 2020
Collinson FX: August 5 - Global equities climb
Australian downturn not as bad as expected, but Victorian lockdown has a ‘major impact' AUD trading up to 0.7150, while the NZD tests 0.6600 on the downside. RBA Governor said that the economic downturn was not as severe as originally feared, but warned the Victorian lockdown was having a ‘major impact'. Posted on 5 Aug 2020
CollinsonCo 728x90 BOTTOM