Henry Liu
Former FPA Special Consultant
- Messages
- 473
Hey Folks:
This past week we’ve had some major strengthening of the Japanese Yen, United States Dollar, and Swiss Franc as the market continued in fear from the natural disasters in Japan. To help stimulate their economy and start the rebuilding process, it has taken the Bank of Japan 33 trillion yen to help depreciate the currency. We are starting to see some effects of their interventions and it may take several days or weeks for the Japanese Yen to weaken significantly. However, taking the parallel of the after effects of the Kobe earthquake in 1995, on the long term confidence should be restored because typically major rebuilding process raises GDP and boosts economy. What gave me the confidence on the long term is the G-7 meeting on Thursday, concluded that a stimulus package for Japan at this point is unnecessary as Japan is believed to have proper liquidity to handle this disaster. However G-7 countries have taken joint action selling the Yen, and after Yen Futures hit major highs on Wednesday we are now seeing markets pulling back. Going into next week we should see further weakening of the Yen in my opinion.
We have only a few tradable releases, but I would expect a sentiment driven market as from news of the earthquake and geopolitical tensions in Libya, general market sentiment should lean towards more risk aversion.
Here's the list of tradable releases:
1. Mon March 21, 2011 – 10:00am EST – USD Existing Home Sales m/m
Historical Data & Chart
2. Tue March 22, 2011- 5:30am EST – GBP CPI y/y
Historical Data & Chart
3. Tue March 22, 2011 - 8:30am EST – CAD Core Retail Sales m/m
Historical Data & Chart
4. Wed March 23, 2011 – 5:30am EST – GBP MPC Meeting Minutes
Historical Data & Chart
5.Wed March 23,2011 - 10:00am EST- USD New Home Sales
Historical Data & Chart
6. Thur March 24, 2011 – 5:30am EST – GBP Retail Sales m/m
Historical Data & Chart
Thanks,
This past week we’ve had some major strengthening of the Japanese Yen, United States Dollar, and Swiss Franc as the market continued in fear from the natural disasters in Japan. To help stimulate their economy and start the rebuilding process, it has taken the Bank of Japan 33 trillion yen to help depreciate the currency. We are starting to see some effects of their interventions and it may take several days or weeks for the Japanese Yen to weaken significantly. However, taking the parallel of the after effects of the Kobe earthquake in 1995, on the long term confidence should be restored because typically major rebuilding process raises GDP and boosts economy. What gave me the confidence on the long term is the G-7 meeting on Thursday, concluded that a stimulus package for Japan at this point is unnecessary as Japan is believed to have proper liquidity to handle this disaster. However G-7 countries have taken joint action selling the Yen, and after Yen Futures hit major highs on Wednesday we are now seeing markets pulling back. Going into next week we should see further weakening of the Yen in my opinion.
We have only a few tradable releases, but I would expect a sentiment driven market as from news of the earthquake and geopolitical tensions in Libya, general market sentiment should lean towards more risk aversion.
Here's the list of tradable releases:
1. Mon March 21, 2011 – 10:00am EST – USD Existing Home Sales m/m
Historical Data & Chart
2. Tue March 22, 2011- 5:30am EST – GBP CPI y/y
Historical Data & Chart
3. Tue March 22, 2011 - 8:30am EST – CAD Core Retail Sales m/m
Historical Data & Chart
4. Wed March 23, 2011 – 5:30am EST – GBP MPC Meeting Minutes
Historical Data & Chart
5.Wed March 23,2011 - 10:00am EST- USD New Home Sales
Historical Data & Chart
6. Thur March 24, 2011 – 5:30am EST – GBP Retail Sales m/m
Historical Data & Chart
Thanks,
Last edited by a moderator: