The last few sessions in the markets have been breath taking, Just a few days ago on FRIDAY, HOPIUM rose and the markets became once again happy go lucky!. Despite the geo political arena getting hotter, American Ships in the straits of Hormuz, plus IRAN completing their war cry exercise and demonstrating its war capability, and selectively saying, “Don’t mess with me, I have the fire power”, its possible, the USA now discounts the IRANIANS for all their empty threats.
Last year IRAN warned “No ships shall pass my seas” and a US SHIP turned back and headed further away, with that, IRAN said “IF YOU COME THIS WAY AGAIN!, I SHALL TAKE CARE OF U!. A week later, when the SHIP returned, IRAN did nothing.
A whole lot of empty promises and lack of management displinary skills of IRANs arm forces, indeed raises many doubts, but then again, they have shown more than once, their inefficiencies, an example how they were not able to handle the naughty behavior of STUXNET or when their mililary depots blew up, due to “improperly of storage weapons” techniques.
A whole lot of questions are always raised, when it comes to IRAN, the sabre rattling has started to become boring, this could be the underestimation both parties could make, leading up to the escalation in world war three.
The USA may just push it further and strangle the IRANIAN even more, before the IRANIANS make the first move, due to fear attack.
indeed escalate world war 3, and the IRANIANS will indeed give them a tough fight, which will solve USA’s economic problems and the Industrial War Complex will once again have their way.
Truly an India Shining update, Moody Affirms India outlook as stable, downgrades world, bank stocks rallied last week, and market participants said rating agencies were irrelevant in the face of global chaos that is underway, does this signal a short on a positive or stable rating, and a long on a downgrade?
NEW DELHI–Moody’s Investors Service said Monday it is maintaining its “stable” outlook on India’s sovereign rating as the growth slowdown and deteriorating business sentiment in the economy are likely to be temporary. The decision would give the Indian government the much-needed respite as it faces heat due to a cut in outlook to “negative” from “stable” by Standard & Poor’s in April and by Fitch last week, reflecting fading investor confidence triggered by worsening conditions in the economy.
Moody’s downgrade gives edge to safe-haven banks
Major ratings downgrades by Moody’s will further divide the world’s biggest banks based on their strength and access to cheap customer deposits. The ratings, released Thursday by Moody’s Investors Service, gave a competitive advantage to “safe-haven” banks that fund themselves with stable, low-cost customer deposits, while worsening the outlook for weaker banks that rely more on capital markets for their funding.
USDJPY last 77.60. Continued consolidation in USDJPY above 77.50 and below 77.80 for the past two trading sessions have failed to make any head way, to the upside, nor have provided any signal that a short term peak is on hand. Our Bias remains to the upside and am expecting a break of 77.89 to confirm a potentially longer term low is in place and larger move to the upside develops.
Its hard to see the catalyst for this, but most ideally, it could be BOJ, which is meeting today and tomorrow and in light of the lower than forecast recently released GDP numbers, weakening the yen could be on the cards.
USDJPY last 77.67. Judging from the recent moment in this pair, it has been a strong momentum filled upward movement, that has failed to provide any dips for those, who missed to get in or remain short. Now that the dollar has its focus on 77.89 key resistant area, some sort of consolidation shall prevail and there after, expect a break that has the potential to even take out 78.30. A sustained move above here, signals a potential low is in place and targets 79.52/80.23 next week.
There are reports circulating that Japan’s Pension Fund (1.3T US), may consider investing in overseas assets to dampen the strength in the YEN. If so more good news for Japan and those who are long the dollar.
Last 77.23, testing key resistant which runs thru all the way from here upto 77.30, expected to give way, for a quick run up towards 77.58/77.70, eventually we should take out 78.30 within a week. Failure here, puts 77.00 into focus. raising stops just under here.
Last, 1.5833. A potential top could be in place in Cable with yesterdays high of 1.59+, cable seems over extended, Now 1.5860 Pivotal has to hold for another attempt to the downside. Key support is 1.5790 region, Only a sustained move below here, will make us to call a top, and look for 1.5732/1.5612 as lower level targets.
Japan’s current-account surplus shrank at its fastest rate on record in 2011, as exports stumbled and energy prices soared, leading to the first shortfall in merchandise trade in decades, government data showed.
The result was partly due to extraordinary events such as the March earthquake and tsunami in Japan, but economists say that the yen’s persistent strength and a growing reliance on expensive energy imports mean the picture won’t improve anytime soon.
More @ http://online.wsj.com/article/SB10001424052970204136404577209764102295618.html?mod=googlenews_wsj
USDJPY – 77.09 – The yen now looks like the funding currency, in light of yesterdays RBA move, weaker across the board with the US dollar, technically, testing above 76.80 puts 77.30 into focus, may not give much trouble, if so, then look for 78.30 to provide some relief. Only a sustained move above here, signals potentially a bottom is in place.