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Yen: Good News/Bad News= No News
By Mike Conlon | November 16, 2009
There were a few reports coming out of Japan yesterday which could have seemingly moved the market, but the opposite effect has occurred. In this regard, the good news has negated the bad news and has caused the Japanese Yen (JPY) to trade in a tight range, though off slightly against other currencies.
The first bit of news was about the “horrific Japanese fiscal situation”, as reported by Bloomberg. This was the bad news.
The good news was that Japanese GDP came in at a surprising gain of 4.8%, ahead of all 20 analysts who had made projections on this figure. All told, this figure looms positive for the world’s second largest economy.
Also to note is that APEC, the Asia Pacific Economic Cooperation, pledged to maintain their stimulus measures until the recovery is on “solid footing”.
As a result, stocks and commodities are higher, and the Canadian dollar (CAD) is benefiting from this, +1.03% vs. USD and +.90% vs. JPY.
This also puts the risk-taking trade back in play.
I’m going to wait to see if the market decides to put any more emphasis on either of these news items and which way the market will move.
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Topics: What To Look At In The Market |
November 16th, 2009 at 11:01 am
what had happened just proves that no one can predict a market value