Daily Commentary 28/01/2015

Equity markets reflected the uncertainty felt in Europe over the Greek elections and disappointing earnings in the U.S.. The mega-storm missed New York and the Mayor foolishly over reacted to the warnings and closed the city. Durable Goods Orders contracted 3.4%, which is a trend scaring many, as a contradiction to the strong economic recovery…

Daily Commentary 27/01/2015

Global markets continued to digest the momentous moves made by Central banks globally. The ECB confirmed that they would extend the massive QE, announced Thursday, after the initial competition date. This extended gains on the European bourse. The sugar-hit did not spread to US equity markets where the DOW dived on a gloomy close. Markets…

Daily Commentary 23/01/2015

The long awaited and much anticipated ECB QE program has been delivered. Mario Draghi, the investment banker, has copied the Fed’s Monetary Policy and announced QE infinity. EUR$60 Billion/month in the bond buying program. The technocrats/bureaucrats have managed to distort the ECB constitution by allowing monetization of its own debt. A practice that was considered…

Daily Commentary 22/01/2015

The NZD and AUD fell out of bed overnight as the realization dawns on Central Banks there is little growth and falling inflation. The Bank of Canada surprised markets and cut interest rates citing low inflation and decimated Oil prices. This caught an already nervous market by surprise and jolted commodity currencies. The AUDUSD fell…

Daily Commentary 21/01/2015

European equities rallied overnight, for all the wrong reasons. Haven’t we seen this movie? The US has flushed the markets with liquidity, since the GFC, giving equity markets the biggest monetary boost in history. The ECB plans to do the same and flood the markets with cheap money in an effort to stimulate. The only…

Daily Commentary 20/01/2015

Markets were slow, calm and steady overnight due to MLK holidays taken by US markets. This allowed speculation on European markets about the timing and magnitude of the ECB’s QE. Massive expansion of liquidity is expected, which boosted equity markets, but undermine the currency. German exports will be a beneficiary but higher import costs and…

Daily Commentary 19/01/2015

Equity Markets week of degradation came to a close with a halt to the losses, while US markets digested the bombshell of the Swiss National bank and the repercussions. Panic spread on retail FX traders with the largest in the US, FXCM, relying on a massive bail out to cover client liabilities. US Consumer Confidence…