Reason for JPY to go bear? One part is the injection of 800B from Buffet triggering the selling off of Yen. Another is what i got in bloomberg news. Look like JPY will remain weak from sometime unless some really big event or news come out again. We shall see then. Happy Trading.
Yen Falls as Gain in U.S. Retail Sales Signals Continued Growth
By Bo Nielsen and Ye Xie
Feb. 13 (Bloomberg) -- The yen fell to a one-month low against the dollar after U.S. retail sales unexpectedly rose last month, allaying concern that the world's biggest economy will slide into a recession and hurt global growth.
Japan's currency dropped against 14 of the 16 most-active currencies as U.S. stock-index futures rose, signaling traders are more confident to bet on higher-yielding assets funded by loans in Japan, in a strategy known as the carry trade.
``There has been an overstatement of the U.S. slowdown,'' said Brian Taylor, chief currency trader at Manufacturers & Traders Trust in Buffalo, New York. ``That makes any good news about the economy equity-positive and carry-trade positive and that weakens the yen.''
The yen weakened to 108.15 per dollar at 9:17 a.m. in New York, from 107.31 late yesterday. It touched 108.22, the weakest since Jan. 15. The yen dropped to 157.54 per euro, from 156.50. The dollar advanced to $1.4565 per euro from $1.4584.
Retail sales rose 0.3 percent in January, after declining 0.4 percent the previous month, the Commerce Department said. The median forecast in a Bloomberg News survey was for a decline of 0.3 percent.
Standard & Poor's 500 index futures rose, indicating shares will climb at the start of trading.
Yen Falls as Gain in U.S. Retail Sales Signals Continued Growth
By Bo Nielsen and Ye Xie
Feb. 13 (Bloomberg) -- The yen fell to a one-month low against the dollar after U.S. retail sales unexpectedly rose last month, allaying concern that the world's biggest economy will slide into a recession and hurt global growth.
Japan's currency dropped against 14 of the 16 most-active currencies as U.S. stock-index futures rose, signaling traders are more confident to bet on higher-yielding assets funded by loans in Japan, in a strategy known as the carry trade.
``There has been an overstatement of the U.S. slowdown,'' said Brian Taylor, chief currency trader at Manufacturers & Traders Trust in Buffalo, New York. ``That makes any good news about the economy equity-positive and carry-trade positive and that weakens the yen.''
The yen weakened to 108.15 per dollar at 9:17 a.m. in New York, from 107.31 late yesterday. It touched 108.22, the weakest since Jan. 15. The yen dropped to 157.54 per euro, from 156.50. The dollar advanced to $1.4565 per euro from $1.4584.
Retail sales rose 0.3 percent in January, after declining 0.4 percent the previous month, the Commerce Department said. The median forecast in a Bloomberg News survey was for a decline of 0.3 percent.
Standard & Poor's 500 index futures rose, indicating shares will climb at the start of trading.
Monthly Profit & Lost :-
May - +85 pips