Japan unveils $18Billion stimulus package
The other day I mentioned that a friend was looking for Usd/Jpy to move lower first but then reverse course and head considerably higher. He mentioned to me at the time that he was unsure of what the catalyst would be, but he would look to buy dips.
Maybe this is the stimulus.
Japan unveiled a 2 trillion yen, or $18 billion, stimulus package Friday, including assistance to small businesses and other pump-priming measures to shore up its flagging economy hit by soaring energy and material prices.
The new measures include discounts on expressway tolls, assistance to farms and help for part-time workers to find better jobs, according to the Cabinet Office. Funds were also earmarked for better medical care, ecological technology, housing loans and education, it said.
Good Luck and Good Currency Trading.
Ortiz speaks and Mexican Rates Follows.
Mexican Central Bank chief Ortiz reported seeing an “End of Inflation Episode”. This dashed all market hopes of further tightening in the region. Yields came off hard and the Currency is at the weakest point of the day 10.2300. Couple those comments with lower crude and we may be in for a pretty big move going into the long weekend.
Good Luck and Good Currency Trading
Another Quiet Day….But Stocks Move Higher
Today was once again a pretty quiet day. Latin American Emerging Market currencies held steady or strengthened (slightly) against the dollar and for now I still like sitting short dollars against the region. I fixed long some Usd/Ars and I see no reason to rush out of that position. The Argy curve continues to flatten and I think that will come to an end pretty soon.
Fannie Mae stop was halted and a management reshuffle was announced. The market liked this news and the stock rallied on the back of it.
I sold some dollars against Asia (Mostly Usd/Krw). The Korean Central Bank was in O/N selling dollars and there is always the chance they get aggressive and really give it a push.
I am starting to really like being short Jpy/Krw. I have a small position on now and will add along the way.
Good Luck and Good Currency Trading.
It’s a Marathon not a Sprint
Really not much to write about today. I think it is important not to force markets like this and remember to live to trade another day.
The dollars climbed against the Latam currencies and I took the opportunity enter a few positions.
I sold Usd/Brl at 1.6440 (BMF). This added to an already small position that I had.
I bought 6 mth Usd/Ars. This took me out of some, but not all, of my interest rate risk as well as added to an already long Dollar position. I also buy more dollars on Tomorrows fix.
I sold some forward Mexico today (looking for the interest rate differential to narrow against dollars). As I said yesterday I think that the Mexican central bank does not want to raise rates again. The curve is very flat and I think there is a very good possibility that we will go inverted.
Speaking with a friend at a large investment house, he is looking for an entry point to buy Usd/Jpy. He mentioned 102.00 but that was just off the top of his head before a big move higher. On a retracement I will buy a few as I do like the carry, possibly against another currency, but I will not wait to 102.00. More likely 105.50 I will start to buy and layer in down to 102.00 then hold my breath and hope for the best.
Good Luck and Good Currency Trading.
It’s a Marathon not a Sprint
Really not much to write about today. I think it is important not to force markets like this and remember to live to trade another day.
The dollars climbed against the Latam currencies and I took the opportunity enter a few positions.
I sold Usd/Brl at 1.6440 (BMF). This added to an already small position that I had.
I bought 6 mth Usd/Ars. This took me out of some, but not all, of my interest rate risk as well as added to an already long Dollar position. I also buy more dollars on Tomorrows fix.
I sold some forward Mexico today (looking for the interest rate differential to narrow against dollars). As I said yesterday I think that the Mexican central bank does not want to raise rates again. The curve is very flat and I think there is a very good possibility that we will go inverted.
Speaking with a friend at a large investment house, he is looking for an entry point to buy Usd/Jpy. He mentioned 102.00 but that was just off the top of his head before a big move higher. On a retracement I will buy a few as I do like the carry, possibly against another currency, but I will not wait to 102.00. More likely 105.50 I will start to buy and layer in down to 102.00 then hold my breath and hope for the best.
Good Luck and Good Currency Trading.
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