May 2015 netted our programs a combined -17.14% in growth for the month. The full breakdown is as follows:
Omicron Growth: -6.66%
Theta Trader: -6.16%
Lambda Ascent: +2.54 %
Omega Genesis: -6.86%
Aside from the steep ascent of the USD/JPY pair, relatively low volatility throughout the month of May on the major currency pairs left our managers with little to “work with” and it was reflected in the monthly results. Although down months are never something to boast about, based on past results this represents a terrific opportunity for clients who may have considered joining in the past but haven’t done so yet to start signal trading as our managers rarely get into extended drawdowns and often “rebound” very well.
The New Zealand Dollar extended a prolonged fall in value against a basket of most major currencies. Interestingly, the consensus behind this fall in the value of the Kiwi points to a fall in milk price forecasted by Fonterra, the world’s largest dairy product exporter. Combine this with a trade surplus drop from NZD754m to NZD98m, and fears that a weak Chinese economy may reduce New Zealand’s export business are leading many to predict this fall could continue through to .65 through the following months before the currency recovers.
The Canadian Dollar remained somewhat sideways throughout the month, though range bound the USD/CAD pair ended just about the 1.25 figure having started the month off just shy of 1.21 the figure. In the Bank of Canada’s public statement it attributed the slide to negative impacts of a recent strengthening in CAD globally and a slowdown in demand from its U.S. partners to the south. Although oil prices have started to rebound from record lows many expect oil prices to stay well below average and in turn push inflation to sub 2%, the Bank of Canada’s target for inflation.
The Bank of England is still eyeing a rate hike as their next “big move”, though with the news that inflation has officially hit 0% in May and economic growth figures were downgraded to 2.5% it is assumed the Bank of England will push back their plans for a rate hike to even further on down the road, perhaps mid next year. The Bank of England also added in its May statement that inflation could and likely would dip into negative numbers throughout the summer as lagging commodity prices catch up with the British economy.