We recently posted why long Yen made sense – almost all of it has to do with the slow death of the carry trade. Buying Yen is obvious but astute traders will pay attention to the second order effects of the Yen strengthening. An example of this is the Kiwi, Gartman explains: The economy in [...]
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DailyFX: 2007 Will Be Breakout Year for Yen
Did you know that in 2006, the Japanese Yen had the tightest range against the US dollar in 35 years? Last year, volatility in the currency market contracted significantly, causing USD/JPY to remain restricted to a 10 big figure (each big figure is 100 pips) trading range. Over the past 35 years, the average high [...]
Apocalypse FX – The Case for Yen Long
Above resistance…spit. The Yen is still above the fib level. Every time I look I think I’m going to see it break. It was worse when the rolls were greater. I’d wake up and there would be a stop loss triggered, I hardly said a word to my broker till I said yes to a [...]
Yen Rallies Big Against Everything
Is this the end of the carry trade? Well have a full write up tomorrow about how you should trade the Yen.
The Surge in Iraq – Dinars Shooting Up
Although the country has 40% unemployment and at least a 50% inflation rate the Iraqi Dinar has managed to surge over 10% in five months. Forbes is not optomisitic about the continued strength of the currency: Inflation is going up, not down, adds Steve H. Hanke, professor of applied economics at Johns Hopkins University and [...]
Interest Rates to Push Yen Higher
The currency market is extremely difficult to predict. So many fundamental factors play a role that making consistently profitable trades is as much luck as it is skill. This is why technical traders love the FX market. Its movements are so random that technicals start to have significance. Even Warren Buffett got his bet against [...]
How the UK Housing Bubble Hurts the US Dollar
From the pink FT: With house price inflation on this scale, the Bank of England can surely not ease rates any time soon. This strengthens sterling against the dollar, which is weakened by the widespread belief that the housing downturn will force the Federal Reserve to cut rates. UK housing is pushing up sterling, while [...]
We will preemptively attack…
because if we have to wait for proof it will be too late to act. And of course I’m talking about Japans interest rate policy. Toshihiko Fukui from Bank of Japan, said that they will move interest rates to take, “action before these conditions appear in order to achieve price stability and keep future economic [...]
Loony Tax Fries Canadian Bacon – Stocks Crushed, Ay?
Canadian stocks were crushed across the board after the Finance Minister proposed a massive tax increases for trusts. The fall was fast and ruthless with some market commentators speculating there may be a decline of 15% or more. The Loony (not Finance Minister Jim Flaherty, but the Canadian currency) tumbled more that 1% and will [...]
Currency Arbitrage – Zinc Highs Make Pennies More Valuable
With Zinc prices at record levels the metal in a penny is worth more than the denomination Zinc passed the $1.80 mark today, that means the current “penny” has a melt value of $0.0101867. All the coins in your penny jar are worth more than their denomination (except for steel cents made during WW2). One [...]
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