Daily Commentary 27/02/2015

The EUR was battered overnight, as the Dollar surged. The Dollar slowed the bull run, with news the Fed will not begin interest rate rises, until later in the year. Realization dawned that QE continues globally and this was reflected in the values of the currencies. The EUR plunged to below 1.1200, while the GBP…

Daily Commentary 26/02/2015

Equities hovered around record highs while the Fed signaled a retreat from interest rate rises. The ‘dovish’ Yellen is showing her true character, unable to tighten monetary policy, excused by QE actions globally. The USD stalled from the recent rally, with the EUR trading 1.1350, while the GBP rallied to 1.5500. This was supported by…

Daily Commentary 25/02/2015

Markets switched focus overnight as the spotlight turned to interest rates away from the fears of a Greek default. EU Finance Ministers accepted conditions from Greece to extend the bailout packages. This confirms obligations that already existed but allowed some semantic concessions to appease voters. Yellen has reiterated early indications citing ‘patience’ as the word,…

Daily Commentary 24/02/2015

The week opened with the Greek debt scenario hanging over markets. The Greeks must come up with a plan to re-negotiate their debt bailout by today and thus far, have not looked like doing this, failing to gain support. The Greeks have turned up with no plan other than ‘no austerity’ and ‘no debt’ The…

Daily Commentary 23/02/2015

Equities surged to new record highs in the USA after an agreement was reached between Greece and the EU. It was a surprisingly robust deal, with semantics being the only compromise, for the EU. Germany had its way and held on to the bailout package and ‘trioka’ controls but agreed to not call it that.…

Daily Commentary 20/02/2015

Equity markets were lower overnight due to the debt re-negotiations in Greece and the Ukrainian ceasefire abuse. EU Finance Ministers will meet tonight and likely rubber stamp a back down compromise, either extending finance, or conceding debt write-off. The Greeks have the advantage because the EU has more to lose, the EUR, while the Drachma…

Daily Commentary 19/02/2015

Markets keenly awaited the outcome from the Fed minutes and they did not disappoint. Global Central bank activity has been geared towards QE, thus preventing the Fed from acting, in terms of raising interest rates. This does have a positive effect on equities but is hardly a reason to believe in the economic recovery story.…