Archive for September, 2010
« Previous Entries Next Entries »The Heat Is On!
Thursday, September 16th, 2010The potential trade war brewing between China and the US is starting to heat up as yesterday Treasury Secretary Geithner said that the US isn’t satisfied with the pace of Chinese Yuan appreciation. This has been a major sticking point as a weak Chinese Yuan due to government control has allowed the trade balance to [...]
Intervention!
Wednesday, September 15th, 2010Japanese yen, you have affected my life negatively in the following ways…. Wait a second, that’s not true at all! All kidding aside, as I mentioned in yesterday’s blog, PM Kan was being tested by the markets as to his resolve to intervene in the rising Yen. And last night they did just that, unilaterally [...]
Yen Strengthens On Election!
Tuesday, September 14th, 2010Overnight, an election in the ruling party of the Japanese government re-affirmed current PM Kan as the head honcho of the DPJ. However the challenger, Ozawa, was seen as someone who was willing to intervene in the currency, whereas Kan was not so the Yen is probing new highs as it is likely that Kan [...]
Unstoppable China!
Monday, September 13th, 2010Over the weekend, China reported a slew of economic data which not only draws the envy of every nation around the globe, but also their ire. Talk is heating up about Chinese currency “mis-alignment”, and the US House Ways and Means Committee is holding a hearing on Wednesday to discuss possible action. This could put [...]
Markets Take A Break!
Friday, September 10th, 2010Today is seemingly setting up as an “inside day” as there are no major forces causing either major risk-taking or risk-aversion. It really is interesting to watch how global markets can fluctuate between both themes on a daily basis, and my personal opinion is that there is no better time to be a trader in [...]
Getting Better, But Not There Yet!
Thursday, September 9th, 2010This morning, US initial jobless claims came in better than expected showing 451K new claims vs. an expectation of 470K. While this is a step in the right direction, it is still at unacceptably high levels and may remain there for some time unless we get a shift in government policy. Earlier in the morning, [...]
SPOTTING REVERSAL CONDITIONS: CASE OF USDJPY
Wednesday, September 8th, 2010by Abe Cofnas This morning’s Wall Street Journal reported increased potential for Bank of Japan intervention on the USDJPY. TOKYO—Japan’s finance minister made it clear Wednesday the government will intervene to tame the yen’s rises if deemed necessary, but investors brushed aside his strongest warning to date and pushed the yen to a 15-year [...]
Euro Banking Concerns!
Tuesday, September 7th, 2010After the long weekend here in the US, the markets have started out decidedly in risk aversion mode. On a day that is light of economic data, concerns over European debt have picked up as bond spreads have widened on both Irish and Greek debt. Questions over capital ratios for the some of the European [...]
Non-Farm Payrolls Improve!
Friday, September 3rd, 2010This morning, the US Non-Farm Payrolls report was the catalyst that has pushed the market higher as all eyes were glued to this news. The report came in better than expected, showing that payrolls decreased 54K vs. an expectation of a loss of 105K, but 67K private sector jobs were added. The unemployment rate came [...]
Growth By Contraction!
Thursday, September 2nd, 2010In what seemingly is a contradiction, Europe is proving that you can grow by shrinking. If you don’t believe that’s possible, look no further than the EU GDP figures reported this morning. GDP figures came in showing growth of 1.9% vs. an expectation of 1.7%. But wait a second, isn’t the EU enacting austerity measures? [...]
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