If U.S dollar will be bought ( in line with rise in % rate)...and/or JPY sold...then we would see the U.S equities FALL in price...as risk is averted and U.S dollars are bought. (equities sold??)
currently, we are still in the bull run stage but at the correction phase.
USD will be bought and JPY will be sold
but
AUD will be bought and USD will be sold
if you trade ccy pair
i think the slight appreciation of US will make export from US less competitive and earning may go down a bit but it only has minor impact to the US equity. if the world economy is doing well, non-US companies will buy much more volume of goods from US companies, which may negate the effect of higher price and overall earning of US companies may go up.
thus, US equity will go up .
usually , i think in terms of flow of funds
which is related to the
1. carry trade
2. risk appetitie / aversion
3. i cannot remember the others ; i need reader to fill it up
currently, we are still in the bull run stage but at the correction phase.
USD will be bought and JPY will be sold
but
AUD will be bought and USD will be sold
if you trade ccy pair
i think the slight appreciation of US will make export from US less competitive and earning may go down a bit but it only has minor impact to the US equity. if the world economy is doing well, non-US companies will buy much more volume of goods from US companies, which may negate the effect of higher price and overall earning of US companies may go up.
thus, US equity will go up .
usually , i think in terms of flow of funds
which is related to the
1. carry trade
2. risk appetitie / aversion
3. i cannot remember the others ; i need reader to fill it up