Henry Liu
Former FPA Special Consultant
- Messages
- 473
Hey Folks:
The market is less focused on the tensions in the Middle East as police in Saudi Arabia were able to prevent protest and Libya’s civil war did not escalate further. However, now we have a different situation that may lead to a risk aversion scenario in the short term with early Friday morning's 8.9 magnitude earthquake in Japan, creating a sharp drop-offs in European and Japanese markets and the appreciation of the safe-haven Yen.
Bank of Japan immediately attempted to take control of the situation by pledging that they have liquidity for this emergency situation and will do everything in its power to contain the aftermath of this disaster. It is difficult to determine the severity of the tsunami, but much damage has been already reported across Japan, with more details surely to be released soon. On Sunday/Monday night, Bank of Japan is expected to have a press conference to specifically to speak about their fiscal plan and financial efforts for this disaster.
We have only a few tradable releases, so I would expect a pretty much sentiment driven market as results of the earthquake and tsunami...
UPDATE: BOJ intervened on Sunday night by injecting 15T YEN ($186 Billion) to stabilize the economy, which means we should see JPY weaken in the short/medium term.
1. Tue March 15, 2011 - 2:15pm EST - US FOMC Interest Rate
Historical Chart & Data
2. Thu March 17, 2011 - 8:30am - US Core CPI
Historical Chart & Data
3. Fri March 18, 2011 - 7:00am - CA Core CPI m/m
Historical Chart & Data
Thanks,
The market is less focused on the tensions in the Middle East as police in Saudi Arabia were able to prevent protest and Libya’s civil war did not escalate further. However, now we have a different situation that may lead to a risk aversion scenario in the short term with early Friday morning's 8.9 magnitude earthquake in Japan, creating a sharp drop-offs in European and Japanese markets and the appreciation of the safe-haven Yen.
Bank of Japan immediately attempted to take control of the situation by pledging that they have liquidity for this emergency situation and will do everything in its power to contain the aftermath of this disaster. It is difficult to determine the severity of the tsunami, but much damage has been already reported across Japan, with more details surely to be released soon. On Sunday/Monday night, Bank of Japan is expected to have a press conference to specifically to speak about their fiscal plan and financial efforts for this disaster.
We have only a few tradable releases, so I would expect a pretty much sentiment driven market as results of the earthquake and tsunami...
UPDATE: BOJ intervened on Sunday night by injecting 15T YEN ($186 Billion) to stabilize the economy, which means we should see JPY weaken in the short/medium term.
1. Tue March 15, 2011 - 2:15pm EST - US FOMC Interest Rate
Historical Chart & Data
2. Thu March 17, 2011 - 8:30am - US Core CPI
Historical Chart & Data
3. Fri March 18, 2011 - 7:00am - CA Core CPI m/m
Historical Chart & Data
Thanks,
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