Friday, November 6, 2009

Japanese yen and the US dollar.

Japanese yen and the US dollar were the strongest of the majors on a day when US stock indices pushed more than 2.5 percent.
This shows that market relationships and hazard aversion are active. Actually, the CBOE’s VIX instability index, one of the major market alarm measures, went up over 30 for the first time since July.
FX carry trades went down the most, as NZDJPY dropped sharply by 3.74 % whilst CADJPY and AUDJPY both lost just more than 3 %. Similarly, NZDUSD fell down 2.2 % whilst AUDUSD dropped 1.8 %, and the sour sentiment went opposite to US economic news. Certainly, personal profits and personal expenditure analysis were corresponding to anticipation for the month of September, as revenues stayed the same whilst expenditure dropped 0.5 %, the most severe decrease since December 2008.

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