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Sam Coxhead's picture

Sam Coxhead is a currency analyst with DirectFX You can contact him here >>

Articles by Sam Coxhead


Volatility here to stay

Big moves in some currency pairs over past week has NZ$ revisiting its recent lows against most majors

US$ rally takes a pause

Better readings for manufacturing out of Europe and the UK has meant the US$ has lost ground across the board

Expectation of further volatility building

A hint of what could be ahead was shown in Japan with their stock market falling 7% in one day

US not hampered by inflation

With little in the way of inflation to worry about, there's plenty of room for US Fed to keep stimulating the economy

Resurgent US dollar provides the lead

Increase in demand of US$ driven by better-than-expected US data and economic outlook

Central banks remain the driving force

RBA cash rate cut of 25 bps to 2.75% is further acknowledgement of global economic under-performance

US$ suffers from renewed pressure

Disappointing data for the US and a theme of ongoing central bank support will provide underlying demand for the NZ$ and A$

Global recovery horizon lengthens

Hopes for a flourishing recovery for the global economy in the first half of 2013 were misplaced

Weak data puts pressure on growth forecasts

It is becoming apparent we will not see a straight forward recovery for the global economy this year

BoJ make their mark

BoJ's aggressive monetary policy initiatives have had a significant effect on NZ$/JPY; moves favour NZ$ for now

Focus on central banks

Four major central banks set to report with Bank of Japan (BoJ) likely to be focal point

European concerns temper sentiment

US Federal Reserve Chairman Bernanke reiterated his support for the FED's current quantitative easing initiative

A mixed global outlook continues

The gradual recovery of global economic health will be an undulating path

U.S. dollar strengthens further

Increased A$ demand following the release of stronger-than-expected retail sales numbers

Plunge back into reality for markets

 China's new policies to curb house price appreciation has fueled market volatility

Uncertainty unsettles markets

Market sentiment struggling to deal with softer economic indicators

Lower participation & liquidity = greater volatility

Japan escapes major criticism for recent efforts to end their deflationary cycle

Choppy and indecisive price action

Issue of "currency wars" brewing over the last few months prompted by Japanese authorities devaluing the YEN

Can the improved market sentiment be maintained?

Significant offshore demand for NZ$ following benign RBNZ announcement and subsequent statement

A paradigm shift is under way

With the sentiment change in Europe the unwinding of "Armageddon" protection investment strategies has started