Greg Gibbs
Greg Gibbs
adequate assets bank central chasing commodity concern curtail economic global growth higher markets overall policy recovering risk strong
Recovering equities and still overall strong commodity markets suggests that there is little broad-based concern that central bank policy tightening will curtail global economic growth and there is still adequate global liquidity chasing higher risk assets and capping risk premiums,
associated australian behavior cyclical global greater growth strong stronger
Strong cyclical equities are often associated with greater global growth confidence, risk-seeking behavior and a stronger Australian dollar.
against australian dollar few happened market moved numbers occasions quite several strong turn
The Australian dollar has moved up against all other currencies quite sharply. The market has been wrong-footed by the Australian dollar, as has happened on several occasions this year. You get a few strong numbers in Australia and the market has to turn around again.
basis currently economic hikes market numbers rate strong toward year
The market is currently factoring in rate hikes toward the end of the year of as much as 50 basis points. That's about right, considering the kind of strong economic numbers we have got out of Japan.
certainly currency discourage economy further hold lower negative struggle taken talking trend year
The RBNZ has been talking the currency down for over a year and certainly won't discourage further falls. A negative trend in the currency has taken hold and the presumption that the economy will struggle this year, without a much lower currency, will keep it trending lower.
based dollar downside economy further greater month next potential rapidly risks slow upside zealand
Based on our sense of positioning, excessively bearish sentiment, and risks that the economy does not slow as rapidly as hoped, we see greater upside potential for New Zealand dollar than further downside in the next month or two.
bottom couple days large last move range shift testing
There is some kind of a shift under way, with the large move over the last couple of days testing the bottom of its range for the last year.
calming comments expecting market maybe obviously prepared
Obviously the market was well prepared for a change. Maybe the market is expecting some more calming comments from Fukui.
appears bonds china coming flag foreign frequently global growth investment japan makers policy regard rising risk trust volumes
Much of this liquidity appears to be coming from China and increasingly Japan where investment trust growth is supplying significant volumes to foreign bonds with little regard to the rising global imbalances that policy makers frequently flag as a risk to the global economy.
chatter impending last months policy rally sharp six week
The sharp rally in the yen last week may not last. There is chatter about an impending policy tightening by the BOJ, but this is still around six months away at least.
australian built head rate support week
Rate speculation this week has built up a head of steam. This will support the Australian dollar.
currency fallen negative number quite surprised
This number is quite a shock. This is a short-term negative for the currency and I'm surprised it hasn't fallen further.
against europe fall hikes large market next prevent quarter rate thinking
Against that, the market has started thinking about rate hikes in Europe in the first quarter of next year. That is going to prevent a large fall in the euro.
canadian federal good helping hiking hurricane juice news oil possible prices reserve season year
A lot of the good news is already priced into the Canadian dollar. It's possible before the year is out that the hurricane season will be over, the Federal Reserve will still be hiking rates, and oil prices will come off, helping take some of the juice out of the Canadian dollar.