Salient to Investors: The dollar advanced to the highest level in 3 1/2 years versus the yen on speculation an improving labor market will compel the Fed to slow stimulus even as Japan pledges to extend easing. Sean Callow at Westpac Banking said the greater the momentum in the US economy, the sooner the Fed will taper off
READ MORE... →Salient to Investors: Marc Chandler at Brown Brothers Harriman said G-20 basically said Japan can continue to reflate their economy, so it will continue to pursue aggressive fiscal easing and monetary easing, and just not talk about the currency so much. S&P retained its negative outlook on Japan’s credit rating, pending policy
READ MORE... →Salient to Investors: Previous yen declines in the 1990s and early 2000s failed to pull Japan clear of 15 years of deflation. The IMF estimates that from From 1994 to 2003, Japan’s economy grew an average of 0.9 percent, a third of the pace of all advanced nations, and despite back-to-back
READ MORE... →Salient to Investors: George Soros made almost $1 billion since November from bets that the yen would tumble. Scott Bessent at Soros Fund Mgmt has 10 percent of the firm’s internally managed portfolio betting on rising shares in Japan. Read the full article at http://www.bloomberg.com/news/2013-02-14/soros-said-to-make-1-billion-since-november-on-yen-bet.html Free email alerts of articles as soon
READ MORE... →Salient to Investors: Noriaki Murao at Bank of Tokyo-Mitsubishi UFJ said the biggest focus as we head into year-end will be the fiscal cliff – investors are buying safe currencies such as the dollar and yen. 62 of 63 economists expect the ECB to keep its benchmark interest rate unchanged at 0.75 percent. Ray
READ MORE... →Salient to Investors: Hans Redeker at Morgan Stanley said the dollar will rise to 84 yen after exceeding it’s 200-day moving average – the yen is the weakest of the G-10 currencies. Read the full article at http://www.bloomberg.com/news/2012-10-22/dollar-moving-average-signals-gain-to-84-yen-technical-analysis.html
READ MORE... →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: 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... →Predictions: Geoff Kendrick at Nomura International says the generalized dollar buying is down to risk aversion, expects the euro to keep heading lower. Daisaku Ueno at Mitsubishi UFJ Morgan Stanley Securities said any slowing in global growth would lead to buying of the dollar because the euro is less attractive than the dollar due to their different economic situations and
READ MORE... →IMF estimates Japanese public debt will balloon to 245.6 percent of GDP in 2014, up from 67.3 percent in 1984. Former adviser to George Soros, Takeshi Fujimaki recommends buying assets in U.S. dollars, Swiss francs, sterling, Australian and Canadian dollars, because Japan may default within five years, before Europe does. Fujimaki says the yen
READ MORE... →