Several facts and opinions regarding the chaotic and politically driven situation of all markets nowadays.
Oct 27: RBA intervenes to support AUD/USD but isolated intervention is deemed to fail, with the post-intervention AUD rally only temporary BBH: G7 statement implies that concerted intervention would most likely be done through the yen route, with EUR/YEN in the limelight. US dollar and yen rose by 6.7% and 12% respectively on a trade- weighted basis in October and 3-month implied euro volatility is at its highest level since the euro was introduced BNY: The safe haven status of the USD and JPY has caused both to become overbought amidst record volatility and escalating crisis conditions. European politicians have called for a "new Bretton Woods" agreement, a return to a pre-1995 world where central banks took a rather more activist stance in currency markets. The possibility of multilateral intervention would achieve its maximum impact if it were seen to be led by the US Treasury SG: The slide in USD/JPY below 100 could be merely a staging post before a renewed JPY Endaka Danske: As the financial crisis draws to an end, some yen support will wane. Looking at the sharp deterioration of the Japanese trade balance that historically has moved closely with USD/JPY, very little downside potential for the pair remains in the longer run - suggesting a USD/ JPY move towards 130. Intervention more likely if USD/JPY breaks 95.90 BNP: G7 concern looks more to do with levels of exchange rates than volatility. Triggers may be at 1.60 for EUR/USD and 100 for USD/JPY. Sterilised intervention is largely ineffective unless it's backed up with appropriate monetary policies Mizuho: With tax revenue down & exports the only growth engine in Japan, intervention is just a matter of time --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
