Posts Tagged ‘ North Korea ’

Could the Yen start to strengthen again ?

This morning I watched the yen climbing against all major currency in reaction to the Japan’s Economy Minister Akira Amari said a even weaker yen would harm the economy and the people.

I believe the strengthening of the Yen was based on this but also on reaction of North Korea missile launch . The Nikkei continued its advances just showing that they didn’t take notice of the Yen strengthening .

The morning saw the Yen strengthening as much as 1.1%, then calming down ti 0.4% pat 102.86 per $ .Considering the Yen touched 103.31 on Friday , was I surprised ? No as this was simple profit taking .

With the USA economy strengthening and know the Federal Reserve talking about the reduction of quantitative easing , things are looking positive as the dollar the advantage from the perspective of fundamentals . Fed Chairman Ben S. Bernanke is scheduled to speak to the Joint Economic Committee of Congress on May 22. Minutes of the Fed’s last policy meeting will be released the same day.

This could be the end of the $85billion a month stimulus .But considering that Japan just started its stimulus this could have a positive effect on Yen ( if you of the opinion a weaker yen is positive ) as then the Yen will becoming the carry trade again . Looking at this 110/120 is very likely .

So No I cant see the yen strengthening I can actually see it weakening by another 10/20% .Abenomics has unleashed a wave of cheap money and I cant see them able to control this genie they released , but it is creating a positive buzz and that’s all it needed to do .

Tony Evans

Yen strengthens – G20 turns on Kuroda ,North Korea next ?


What a week ,the Yen was like a see-saw , up up up down !! In the end the yen maintained an advance from the end of last week before a Group of 20 meeting where Japan may face criticism over stimulus efforts that have weakened the currency, I do chuckle that the G20 are saying this , as the FEB , ECB and BOE have been doing this for years ! But Japan is doing it to boost inflation .

Japan’s currency touched a one-week high, having slumped to the lowest level in four years on April 11 at just short of 100 per dollar, I was so unhappy at this as I had a position on it touching a 100 ! Its not if it touches 100 but when . After the U.S. Treasury Department said April 12 it would put pressure on Japan to refrain from competitive devaluation. Bank of Japan (8301) Governor Haruhiko Kuroda gives two speeches today, after surprising markets on April 4 by doubling monthly bond purchases, seeking to end 15 years of deflation.

Governor Haruhiko Kuroda has his vision and is adamant he will achieve it . But the BLACK SWAN is North Korea , today there will be a missile launch and as such fear will kick in and yen will strengthen .

As I type this I am listening to John Kerry United States Secretary of State and I am pleased to hear he is encouraging talks but also stating we will not be bullied , strength not appeasement .

Monday is such a great start to the week , it has the promise of all possibilities in the week ahead .

Lock and load ( not the best phrase in the current climate I know !)

Tony Evans

Japan “accidentally” announces N.Korea missiles !

You know you lived in Japan to long when you get woken up by earthquake and just go its not big lets go back to sleep . A Japanese official on the other hand mistakenly announced the launch of a North Korean missile instead of sending an alert about a strong earthquake!!

The official at the western Osaka aviation bureau emailed 87 airport offices to say a North Korean missile had been launched, Japan’s transport ministry said.all he was doing was seeing if there was any damage ! Wpsy

It took them 6 minutes to sort it out !
World war 1 was started by a single shot , this could have been the war that was started by a single email .

Enjoy this beautiful Sunday ,

Tony Evans


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