Nikkei crossed 17500, will support usdjpy for a run to 125.
Nikkei Bull Market
- Thread starter Spectre2007
- Start date
just wish US markets worked like this. My equation as a trader: Make $$$ in China/Japan, Give back to US.
Forgive me if this sounds opposite of your assessment, but why would you think that the yen falls when their market is rising?? If you were looking to invest in the japanese market, you would be buying the yen against your own currency as their equiteies are not dollar or euro denominated. Furthermore, the real catalyst for currency volatility is interest rates which japan has the lowest in the world which is why the yen is weak. If the japanese decide to tighten rates (do to a surge in equities and associated inflationary pressures that could come with it) there will be an appreciation in the yen/$.
re: "the yen falls when their market is rising"
What may be happenening is that the falling yen moves the n225 up, because exporters like honda & toyota make bigger profits when they repatriate their US profits, assuming their US prices (in dollars) don't change -- eventually they change dollars to yen.
What may be happenening is that the falling yen moves the n225 up, because exporters like honda & toyota make bigger profits when they repatriate their US profits, assuming their US prices (in dollars) don't change -- eventually they change dollars to yen.
On the whole the Japanese economy is a export economy. Everytime the yen depreciates against the dollar, the export component of the Nikkei rallies, secondary to dollars they are getting back for their goods instead of yen.
Same principle with Euro and GBP, the european central banks are complaining that Japanese are dumping goods, and their interest rates dont reflect the strength in their economy.
So whenever Nikkei or USDJPY rallies its symbiotic in its implications, if the Nikkei rallies, means business prospects are looking good, and since most of their business is exports, means, premium currency returned for a depreciated currency.
Same principle with Euro and GBP, the european central banks are complaining that Japanese are dumping goods, and their interest rates dont reflect the strength in their economy.
So whenever Nikkei or USDJPY rallies its symbiotic in its implications, if the Nikkei rallies, means business prospects are looking good, and since most of their business is exports, means, premium currency returned for a depreciated currency.
by the way, incredible call on that natural gas spread.
thanks a lot!!
Quote from scriabinop23:
by the way, incredible call on that natural gas spread.
thanks a lot!!
I score a coup every once in a while.
I still like the fact that that spread is a fund favorite and trades more like an outright than a spread when it gets going. On that note, I hear that Centaurus is still EXTREMELY short the march against april from when they rode it down opposite amaranth thus setting up the potential for a massive move in it on a short covering of the march leg. Weather is still looking like record cold coming for first week of february when march will be prompt and the weather going into this weekend isn't all that shabby either. I have attached a chart of the 2003 march/april spread as a reminder of just how explosive it can get (moved about $2.75 in 2 days!).
Agree, that windfall tax they were talking about for oil co.s earning record profits should have been for funding the rehabilitation of troops injured and to take care of the families of those lost. Do you know that the families opf troops who are in long term rehab for severe injuries have to pay out of pocket or rely on charity to be able to be close to their loved ones while they convalesce. I think the military only pay for two trips per year. I was disappointed that the Dems didn't make something along the lines of improving conditions for the military and vets as one of their 1st 100 hour prioritys.
nice !!! i want to get in on this information loop. we should move this to the natural gas thread.