We are Short JPY
22/11/10 08:07
Ashraf Laidi will Join Chris
Lori at 3 Day London Workshop
Jan 21-23
Friday Jan 21: 9am-5pm
Saturday Jan 22: 9am-5pm
Sunday Jan 23: 9am-5pm (Ashraf Laidi from 1:30pm – 5pm)
This workshop is contingent upon demand. You must show your interest with a $300 USD deposit before Dec 20. If there is not enough interest, the event will be canceled and your deposit will be refunded. If we proceed with the event, the balance of payment will be required.
Other events:
Chris Lori Open Webinar
“Interest Rate Spreads and FX”
Tuesday Nov 23 9pm EST (New York Time)
Register Here: https://www2.gotomeeting.com/register/565735387
Ft Lauderdale Workshop – only USA event in 2011
Feb 18-20
Singapore Workshop
Mar 4-6
We are short JPY against a basket
Irish Prime Minister Cowen announced on Sunday that Ireland has formally requested financial assistance from the EU/IMF. The euro clearly benefited from the news during the Asia session, and the dollar in particular weakened steadily against both the euro and the AUD. On Friday, the S&P 500 finished +0.7% higher, despite another 50bp hike to China's reserve requirement ratio. ECB President Trichet said that a strong dollar relative to the other floating currencies is very important. New York Fed Executive Vice President Checki said that recent dollar weakness is a side-effect, rather than a goal of the Fed's policy. He forecast that as US growth strengthens, the dollar should strengthen accordingly. US Treasury Secretary Geithner implied he would not support any attempt to change the Fed's dual mandate so that it focuses exclusively on inflation. He said the existing dual mandate has "served the country well over time". Minneapolis Fed President Kocherlakota, who is due to become an FOMC voter in January, is scheduled to speak later today. Last week, for the first time, Kocherlakota publicly expressed his support for the Fed's latest round of quantitative easing.
Jan 21-23
Friday Jan 21: 9am-5pm
Saturday Jan 22: 9am-5pm
Sunday Jan 23: 9am-5pm (Ashraf Laidi from 1:30pm – 5pm)
This workshop is contingent upon demand. You must show your interest with a $300 USD deposit before Dec 20. If there is not enough interest, the event will be canceled and your deposit will be refunded. If we proceed with the event, the balance of payment will be required.
Other events:
Chris Lori Open Webinar
“Interest Rate Spreads and FX”
Tuesday Nov 23 9pm EST (New York Time)
Register Here: https://www2.gotomeeting.com/register/565735387
Ft Lauderdale Workshop – only USA event in 2011
Feb 18-20
Singapore Workshop
Mar 4-6
We are short JPY against a basket
Irish Prime Minister Cowen announced on Sunday that Ireland has formally requested financial assistance from the EU/IMF. The euro clearly benefited from the news during the Asia session, and the dollar in particular weakened steadily against both the euro and the AUD. On Friday, the S&P 500 finished +0.7% higher, despite another 50bp hike to China's reserve requirement ratio. ECB President Trichet said that a strong dollar relative to the other floating currencies is very important. New York Fed Executive Vice President Checki said that recent dollar weakness is a side-effect, rather than a goal of the Fed's policy. He forecast that as US growth strengthens, the dollar should strengthen accordingly. US Treasury Secretary Geithner implied he would not support any attempt to change the Fed's dual mandate so that it focuses exclusively on inflation. He said the existing dual mandate has "served the country well over time". Minneapolis Fed President Kocherlakota, who is due to become an FOMC voter in January, is scheduled to speak later today. Last week, for the first time, Kocherlakota publicly expressed his support for the Fed's latest round of quantitative easing.
Ireland officially requested financial assistance on Sunday. Wire reports indicate a joint EU/IMF program will be negotiated shortly, with financing from the EFSM and the EFSF, plus bilateral loans from the UK and Sweden. The euro bounced early Monday, and could benefit further as the Irish request has come sooner than expected. But for any gains to endure, the bond yields of peripheral Eurozone economies would need to fall to more sustainable levels, which seems unlikely. We will keep you posted on Eurozone bond spreads in Pro Traders Club. It is our view that the Eur upside potential is limited against USD and are taking positions on the inside band of the 1.3400 to 1.3900 range. However, we are long EURJPY and EURCHF, consistent with our short JPY and short CHF view.
The euro was boosted by Irish Prime Minister Cowen's decision to formally request financial assistance from the EU/IMF. Cowen expects negotiations on the terms of the rescue to be concluded over the coming weeks. Finance Minister Lenihan said the whole package would be worth less than EUR100 bn. In a statement, Eurozone finance ministers welcomed the decision, adding that both the UK and Sweden would also consider participating by means of bilateral loans. Now that we got that overwith, EUR may stabilize through the Thanksgiving week. It is important to note, light trading and thin liquidity during Thanksgiving week may result in high volatility, so take caution on open exposure.
The NZD fell sharply after S&P downgraded the outlook on New Zealand's foreign currency rating to negative from stable. Finance Minister English said the move shows the need to reduce New Zealand's heavy reliance on foreign debt. We went long NZDJPY at 64.50 after the fall resulting from the downgrade report. This is consistent with our short JPY view covered in Pro Traders Club.
BoC Governor Carney said the BoC would be prepared to "adjust policy" if the level of the CAD was such that it threatened the bank's ability to achieve its inflation target. He said the bank has the tools to intervene in the FX market, but would use these only in extreme circumstances. We will consider long USDCAD at 1.0100 area, depending on timing and liquidity through the holiday week.
We have been building positions long USDJPY from 82.50 down to 80.50 per review in Pro Traders Club and those positions are beginning to see nice gains.
There are a couple of videos I’d like to share…
The first one is of an adorable little girl who won 2 silver medals at the World Karate Championships in Portugal. She says she wants to be like me, but the interviewer made her say that…
http://www.youtube.com/watch?v=ufeMgWE_LwM
The second video is for those who are not totally clear on how Quantitative Easing Works… a must see…
http://www.informationclearinghouse.info/article26818.htm
Good Luck with your Trading and Be Careful Out There!
Chris Lori
CTA