5/6/2010 0 Comments
The flight to safety today has concerned the Japanese Govt. enough to make statements shortly after the market opened in Asia. I feel that they are very uncomfortable about the strengthening of their currency, and in effect, the biggest way that the woes of Greece can spread to them in the short term. If looking for a currency trade to put on anything against the Yen would be a good place to start looking. Should the market continue this direction It will prompt action by the Bank of Japan to intervene, should the market recover, and it will be a strengthening of riskier currencies. As far as stocks are concerned Japanese companies have more purchasing power at the moment but exporters will certainly suffer if the currency remains at these levels.
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