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Nikkei 225 - USD/JPY Correlation

Last year around the summer time I've made this prediction about Nikkei 225, read more here: Nikkei 225 Will Revive Yen Bearish Trend?
Since than there have been many new developments in the market and the macro landscape has been reinforced itself as soon as BOJ has gone full tilt expanding their current QE programme, and BOJ has lunched QQE II on October last year. BOJ decided to increase its amount of monetary base from 60-70T yen to 80T yen, expanding their balance sheet even further.…
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Taper Odds Skyrocket After NFP

Although taper odds skyrocket after last non-farm payrolls there are still reason enough for Fed to wait like inflation which fell to 0.7% y/y from 0.9%. As I already said before if Fed doesn’t taper in December it won’t be due to a weak jobs market but because of fear that the stock market will enter in a bubble territory because of excessive speculation.
  • US Dollar and Tapering

The Fed will start tapering, not because of strong economic data or because the unemployment will decline, but because…
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What do you think about Brazil?

Happy Monday!.. I thought I would start Monday with a puzzling question. Any thoughts about Brazil? Brazil raised key interest rate a half-point to 8.5 pct. Do you think it’s good or bad for Brazil? I think it will slow down Brazilian economy, because raising interest rates will slow down exports. The higher costs of living for some or, more precisely, higher cost survival for most is unavoidable. Especially, small businesses will feel the impact and suffer tremendously. Politica…
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