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Good Morning for Pac Rim!
By Mike Conlon | November 13, 2009
So far this morning, Pacific Rim currencies are faring the best led by the Japanese Yen (JPY) which is up against the Euro (+.84%) and the US dollar (+.74%) What seems odd though is that the next best performers are the Aussie and the Kiwi.
Under “normal” circumstances, these currencies are on opposite ends of the spectrum so to speak. The Japanese Yen benefits the most from the risk-aversion trade, and the Aussie and Kiwi benefit the most from risk-seeking. So which is it?
Well today its a little bit of both! Now we all know that Obama is over in the neck of the woods trying to get everyone on-board with US, but this market action is interesting to me. Now, Japan did just report good growth numbers, but they risk economic slowdown as reported by Bloomberg here.
Why this is strengthening the yen while traders are seeking higher yields is a mystery to me (if anyone knows– feel free to chime in;)
In any event, when I see a situation such as this one, I usually feel that something “has to give”. So I am anticipating a little bit of reversion to mean here, and am thinking that both the Aussie (AUD) and the Kiwi (NZD) might go negative before today’s session is over.
Unfortunately, I am having MT4 issues this morning so I may just sit on my hands, but will be keeping an eye on Yen crosses and Aussie and Kiwi. You should as well.
Check back later to see how this pans out and wish me luck with my MT4!
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Tags: account, AUD, Aussie, course, currenc, currencies, dollar, dow, EUR, Euro, forex, free, fx, fxedu, Il, interest, Japan, jpy, live, market, Mike Conlon, news, nzd, practice, ssi, time, trade, trader, trades, trading, Yen
Topics: What To Look At In The Market | 1 Comment »
November 13th, 2009 at 11:11 am
indeed a good morning for us
Go pac rim!