Archive for July, 2011

Strong Yen hurting Japanese big names

July 26, 2011 by · 2 Comments
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(As written for My Paper on 26 July 2011. Click here to enlarge)

Japanese exporters are starting to feel the heat again.

With the Yen near its all-time highs, big names like Toyota, Sony and Nissan are frustrated that corporate profits are hurt due to the Yen strength.

As the world’s 4th largest exporter, Japan thrives on a weak Yen to aid export sales.

Early this week, the USD/JPY fell to 78.13, the lowest in 4 months.

According to the Bank of Japan’s Tankan Survey, that rate is now more than 4 Yen below the rate on which big manufacturers have based their earnings forecasts for the current fiscal year. Read more…

Greek default the focus at Brussels

July 19, 2011 by · 2 Comments
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(As written for My Paper on 19 July 2011. Click here to enlarge)

Government leaders in Europe will meet this week in Brussels to discuss the debt crisis again.

One of the key discussions would inevitably be the consequences of a Greek default.
Last Friday, credit-default swaps protecting Greek debt from losses for five years came in at 2,415.07.

According to Bloomberg data, that price signals an 88% chance of default. Read more…

Signs point to slowdown

July 12, 2011 by · 6 Comments
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(As written for My Paper on 12 July 2011. Click here to enlarge)

Last month, I wrote about how the “Forex world” is divided into 3 regions: US, Europe and Asia-Pacific. Hence, to get a snapshot of> what’s going on around the Forex world, we only need to see the stories that unfold in these 3 regions.

Last week, all 3 regions had news which pointed traders to only 1 conclusion: global growth could be slowing.

Let’s have a look at all three news: Read more…

Focus is now on US debt

July 5, 2011 by · 4 Comments
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(As written for My Paper on 5 July 2011. Click here to enlarge)

The Greek story has received temporary closure after European finance ministers authorised a loan of EUR8.7 billion to be paid by 15th July. The IMF itself will also step in and honour its fifth installment of aid to Greece.

With the Greek saga out of the way, all eyes are now turned to the US.

Traders are mindful of 2 things about US right now: Read more…