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Task 2 - Japanese Yen

I picked Japanese yet, because I believe Yen due its utility in the carry trade. A “carry trade” consists of borrowing a currency with a low interest rate, exchanging this money into another currency, and investing exchanged money in higher yielding and higher risk investments. These investments can include but are not limited to emerging markets, US-based stocks, and Japanese stocks. In turn, investors are essentially getting paid money when they choose to invest in a depreciating currency. In…
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alltrade avatar
alltrade 21 Jun

Yes, USD could go up much higher but then one also needs to remember that higher exports also raise the value of the currency of the exporting-country by creating more demand for it, that's why this pair had been falling for quite a while before the recent rise, which can clearly be seen on monthly charts, so we'll see how it goes :)

alltrade avatar
alltrade 21 Jun

Bernanke probably has dug a deeper hole than his predecessor/mentor Greenspan, who'd caused a massive bubble with low interest & ridiculous monetary expansion; present unprecedented amount of liquidity could temporarily fire up a mega-bubble but hell will break loose when it collapses, could be the end of US as we know it!
It's like giving more drugs to a drug-addict having withdrawal symptoms, sure, it "stabilizes" him for a while but that's not a permanent solution to his problem.
Central-planning didn't work with agriculture, not with industry & it hasn't been working with money either!

Marie avatar
Marie 21 Jun

annatimone thank you for the article and nice photo! please add the tag "Task 2" to this post (and don't forget to add this kind of tags to all tasks)

annatimone avatar

Hi Marie,
Where or how do I tags? I don't see it anywhere on the blog or anywhere on post page. Please let me know. Thank you.
Anna

annatimone avatar

Hi Marie,
I got it! I was looking for tags option at the bottom of the post, like in WordPress. I found it. Sorry! Thank you.
Anna

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The Future of Forex in 2013

I came across an interesting article on Yahoo Finance ” Forex Outlook for June“ and thought I would share my opinion with you. Generally, I think Forex is expected to be very volatile this year, because of drop of gold prices and slowdown of economy in China. Economic slowdown in China is mostly due to substantial decline in exports in response to recession in Europe and US, inflated property prices and generally inflation in China is on a rise. Also, China unsuccessfully tried to burst the bub…
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Nadin5794 avatar

https://www.dukascopy.com/fxcomm/blog/?nickname=Nadin5794 here is levels and strong resistance on yen..

annatimone avatar

Good info! Thank you for sharing, Nadia. I love your photo! Was this photo in the magazine? Are you a model? It looks like you are.

Dieselfx avatar
Dieselfx 24 Jun

the market tends to react apriori

annatimone avatar

Right now you are probably right. But generally, is the market rational? I would say no, but neither are we. The goal is to be irrational in the same direction and at the same time.

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alltrade 25 Jun

It depends how one defines as "rational"! It's the people & their thought-processes that materialize in actions of buying & selling that move markets. To me, the market "just is", there can be nothing right or wrong, rational or irrational about how it moves.

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