I'm selling front month YEN futures this session at 8504 to 8516, up to three. Nikkei 225 loss yesterday, putatively on fear of USA slowdown, is supposed signal YEN strength -- i.e., slowdown means FED rate cut. I don't see that, and I see another reason for Japenese equities' retreat. And I don't see a BOJ hike in or by January, which is the betting. Persistent deflation risk in Japan overrides everything else there, so no hike.
The USD continued downwards against the majors in the overnight trading session as the US holidays resulted in low volume trading. Due to Thanksgiving the NYSE and the NASDAQ were closed for business. The EUR/USD has set a firm base at the 1.2950 zone sliding slowly towards 1.3000 which is a huge physiologic barrier on traderâs minds. Due to the fact that many traders didnât anticipate the large pullback from the USD a couple of days ago, many new orders have been triggered on the USD sell side waiting for a reversal. However one must remember that the holidays are at the doorstep and while consumer spending is going to rise, importers will try to satisfy their shopping needs by bringing more goods, expecting a low USD in order to raise retail sales. Furthermore the democratâs control of govern has more impact on the bear side of the USD and has not yet been fully reflected by the market, investors are waiting for further US growth and inflation data next week and until then the market should stay below the two year high barrier of 1.3000, with a good chance to break above next week. please tell me what you think
My last trade -- USD over Yen -- and the reason for it are so fried that I don't have anything to offer by way of comment. Cheers to the dollar shorts who've caught this startling move.
I believe the Canadian Dollar met resistance of its downchannel (that started back in May). Finance Minister Flaherty is sending US capital scurrying for the border with his huge tax increases on Trusts (while giving Can Citizen's tax credits to zero it out.) Course that didn't save their Pensioners the $30B market loss of capital. Politicians need to pass an economics test before they are allowed to run. Pols in the Commons endlessly debate whether Quebec is a 'nation' ... as Western Canadian's lose the capital needed to roll new technology into the old oil fields. Bad as Congress... All my money is back looking for a new home. T
I beleive this doesn't have any sense. Democrat's control is bullish not bearish Big corporations including oil wanted weak dollar Democrat will not cheer them as Bush did. Also tax increase for spectacular oil earnings will be good for dollar as it will decrease deficits And possible withdraw from Iraq and saving 100 bln $gives some hope to close budget deficit to zero
But still the dollar is going down even now at the opening... i believe the democrates does have a berish influance on the dollar. they will take the troops out of Iraq this is true but doing that will cause an even more berish dollar sentimante since the Arabic countries will convert dollars to other currencies such as Euro and british and hold it on their central banks. i do beleive dollar has still much more room to drop. tell me what you think ?