US Trade Groups upset over Yen
at 2005-12-12 18:19:41
As the Yen continues its 3-year slide against the USD, many American trade groups are beginning to cry foul, claiming Japan has taken steps to artificially depress its currency. At $842 Billion, the Bank of Japan’s foreign exchange reserves are currently the largest in the world. Some American firms believe this is a consequence of calculated intervention in forex markets- buying massive amounts of USD denominated assets in order to hold down the Yen and make Japanese exports seem more attractive. For the record, Japan insists that the Yen’s current value is the product of market forces. Not persuaded, American trade groups have begun lobbying the US Treasury Department to shift its attention away from China, and begin pressuring Japan to allow the Yen to appreciate. Reuters News reports:
“There is no excuse for the G7 to get together and sit around talking about China when the currency imbalances and Japan's policy of strongly encouraging that isn't even disc
Currency traders punish New Zealand Dollar
at 2005-12-12 18:19:41
Spurred by favorable interest rates, currency traders have bid up the value of the New Zealand Dollar to a 20-year high in trade weighed terms. This week, however, the NZD was a dealt a major blow, as Standard and Poor’s announced that New Zealand can no longer sustain its massive current account deficit, which is approaching 8% of GDP. In addition, the Central Bank of New Zealand announced the end of its policy of monetary tightening. If the US, Europe, and Canada continue to raise interest rates, the New Zealand interest rate differential will become less attractive. As the old saying goes, ‘what comes up must come down.’ The Financial Times reports:
The Australian dollar fell 0.7 per cent to A$2.3169 against sterling as soft GDP data strengthened a perception that Aussie rates have also peaked.
Read More: Headstrong kiwi flies too close to the sun
British economy is lackluster
at 2005-12-12 18:19:41
In a recent report, Britain’s Central Bank warned that the nation’s economy would likely grow at a pace of 1.75% in 2005, which would represent the worst year of growth in over a decade. This latest forecast is significantly from earlier forecasts of 3-3.5%, that the Central Bank had released earlier this year. According to experts, rising energy prices are responsible. Others pin the blame squarely on the slowing real estate market, which has spurred a sharp decline in the consumption component of GDP. Ironically, other G7 countries, including Germany and Japan, are finally showing signs of growth. Britain’s economy, however, seems headed in the opposite direction. The Wall Street Journal reports:
Calling 2005 “the toughest and most challenging” of his eight years as treasury chief, Gordon Brown blamed “a virtual doubling of global oil and commodity prices.”
Read More: British Growth, at 1.75%, Is Slowest
Stock Watchlist and YHOO
at 2005-12-12 18:19:40
Watching the following stocks for high volume breakouts:
FLOWE: currently 8.66. buypoint at 9.
AIRM: currently 11.91 on high volume. Buypoint 12.20.
DIET: currently 5.52. Watch for low volume pullback.
PFWD: currently 10.81. cup handle buypoint at 11.
MOT: look for a pullback.
YHOO had a modest gain after testing 35 for support yesterday. Back up where I bought it.
Portfolio Update: Lesson Learned!
at 2005-12-12 18:19:40
Remember all that talk about YHOO breaking it's 35 resistance level and being ready to soar? Was I right or what? It's jumped up to around 38 and still could go higher. With 1275 shares at an average cost of 34.21, that would put me up close to $5000. Now after patting me on the back for the insight, can you please hit me over the head with a hammer! I pulled out at 35.73 for a decent gain because I wanted to go with an Avian flu play that didn't really show much technically, BCRX. That stock hasn't done much, while YHOO has been on fire. I learned a great lesson from this trade. Stick with what you have conviction in due to hard work and research, rather than something exciting on CNBC.
I currently have a 1000 share position in BCRX. Bought at 13.86 and it is currently at 13.87 . . .what a gain! I'm going to sti
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