Salient to Investors: Teppei Ino at Mitsubishi UFJ said the dollar may rise to an eight-week high against the yen as the dollar-yen struggles with the upper limits of the Bollinger band and ichimoku cloud at around 79 – once above these levels, it’s likely to move to the middle of the 79-80 range. Ino said the
READ MORE... →Salient to Investors: Neil Mellor at Bank of New York Mellon said we are heading into a far more difficult period for the world economy and an exacerbation of currency wars. Kit Juckes at Societe Generale said rich nations are becoming increasingly irritated by exchange rates they see as overvalued, and the currency wars are
READ MORE... →Salient to Investors: Lower implied volatility among major currencies makes investments in currencies with higher key lending rates more attractive because the risk in such trades is that market moves will erase profit. Peter Rosenstreich at Swissquote Bank said the ECB’s planned purchases of government bonds to curb the debt crisis will
READ MORE... →Salient to Investors: Paul Krugman of Princeton University said: The US and EU are nowhere close to ending the financial crisis and German-led austerity efforts may lead to a 1930s-style economic depression. The US needs maximum help from the Fed and another round of stimulus -which should be directed to distressed individuals
READ MORE... →Salient to Investors: Ramin Toloui at Pimco says: Brazil, South Africa and Mexico offer the best emerging market local-currency bonds because they offer higher yields than the debt of developed nations – very slow global growth and very low core industrialized yields are a strong force pulling rates down over time. Flows into emerging-market debt will
READ MORE... →Salient to Investors: Joe Manimbo at Western Union Business Solutions is skeptical the Spanish stress test results will alleviate concerns about global growth, though it can keep some firepower available for the bloc’s rescue fund. Read the full article at http://www.bloomberg.com/news/2012-09-27/euro-holds-gain-as-spain-cuts-boosts-bailout-prospects.html
READ MORE... →Salient to Investors: Joyce Chang at JPMorgan Chase said QE3 puts emerging-market corporate and sovereign debt in a sweet spot by reducing bond supply and prompting investors to seek higher-yielding debt – modest borrowing by emerging-market governments and companies has avoided a supply glut. Chang favors commodity-related currencies including the Russian ruble, Mexican peso and
READ MORE... →Salient to Investors: Daisuke Uno at Sumitomo Mitsui Financial said the charts predict a fall in the euro to a 12-year low against the yen next month. On the weekly ichimoku chart, the conversion line remains below the base line; the spot price is below the cloud; and the lag line is below the spot prices. Ichimoku charts predict
READ MORE... →Salient to Investors: Andrew Wilkinson at Miller Tabak said the Fed shift was a welcomed driver for risk-loving investors, along with the ECB’s bold defense of the euro. Sebastien Galy at Societe Generale said the expected ECB actions are helping the market to move away from the risk of financing of the U.S. and the peripheral risks
READ MORE... →Salient to Investors: Charles St-Arnaud at Nomura said QE is negative for the dollar. Jeremy Stretch at Canadian Imperial Bank of Commerce sees a weakening dollar trend. Read the full article at http://www.bloomberg.com/news/2012-09-13/dollar-is-near-4-month-low-against-euro-after-fed-expands-easing.html
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