Wednesday, October 14, 2009 11:35:00 PM
* 15 Oct 09: 03:35 GMT (SGA) - FX NOW! USD/JPY, GBP/JPY Flows - MoF Fujii (after Minezaki yest): stable FX important
Alas! Some comments from MoF Fujii after "curious" comments from MoF Naoki Minezaki yesterday. MoF Hirohisa Fujii says stable FX is important both domestically and internationally - Jiji- Reuters. On FX, USD/JPY at 89.40-43, with MoF seen cautious of USD/JPY breaking toward 88.00 handle and January 87.10-12 lows - lows since 1995 - even as MoF Minezaki comments yesterday that no need to intervene when JPY rises, pushed USD/JPY from 89.30 to 88.83 - something which MoF Fujii may not want? USD/JPY bids at 89.00-20, offers still 89.80-90.00, stops on break of 90.00-05.WL
* 15 Oct 09: 03:31 GMT (SGA) - FX NOW! GBP/JPY, USD/JPY Flows - USD/JPY offers 90.00; but Cross/JPY demand to push it over
USD/JPY at 89.44-46, capped by exporters, Asian selling, but supported on back of Cross/JPY demand - with higher Aussie, Kiwi, and Euro, including Cable supporting Cross/JPY. Offer 90.00, stops above 90.00 level, while bids at 89.00-20 on the downside. Talks M.E. accounts, real money have been good buyers on dips, not surprised to hear more support at 88.50-60. GBP/JPY edging back up, to 143.55-65, while Cable up at 1.6050-55, as BoE MPC Paul Fisher rejects market views that BoE is talking down Cable to boost exports. GBP/JPY Bids at 143 lows, eye stops above 144.00. WL
US Dollar Crashes Through Major Support Level
Posted: Oct 14 2009 By: Dan Norcini Post Edited: October 14, 2009 at 12:51 am
Dear Friends,
This evening in Asian trade, the Japanese Minister of Finance once again restated the new view out of Japan that the level of the Yen is no longer an obsession with the monetary authorities of that nation. His comments were interpreted by the Forex markets that intervention to stem the advance of the Yen is most unlikely. With that, market participants wasted little time bidding the Yen into a strong advance.
Those statements of his, combined with that of Federal Reserve Vice Chairman, Donald Kohn, that the US economy would not experience a quick or sharp recovery out of its recession, were both read by traders that US interest rates were not going anywhere anytime soon. Carry traders then beat the Dollar down below critical support near the 76 level on the USDX as they rushed into higher yielding currencies such as the Aussie and Loonie. The Euro also shot up to another new yearly high.
It is looking more and more like the current Administration has set on a course of deliberate destruction of the US Dollar and with it, the economic might that the US has enjoyed since post World War II. As said many times on the pages of this web site, the profligacy of the US has inescapable consequences and we are now seeing a rapid acceleration of the same. The fall in the Dollar is picking up momentum and that is why we are witnessing gold moving into new highs.
But gold is more than a Dollar phenomenon – Gold priced in terms of British Pounds and in Euros is relentlessly moving higher as both Great Britain and Europe, the fading West, are debasing their currencies as well.
Protect yourself from the theft of your wealth by these conscienceless politicians and monetary officials for they have sold their citizenry down the river and plundered them in the process far more thoroughly than Attila and his army of Huns ever did to Rome of old. At least the Roman inhabitants were aware of the rape and pillaging of their substance – when the general public finally awakens to the despicable looting of their treasures by these reeking buzzards, they will rush into gold with a fury that will shock even many of the readers of this site.
Click chart to enlarge this evening's action in the US Dollar in PDF format with commentary from Trader Dan Norcini
