September Currency

Saturday, 27. January 2018

While countries regulatory structure does not react in this situation, the risks of imbalances will increase. The bet against the yen is so strong and the Japanese currency will have few chances to maintain its value in the medium term against major currencies, even against a dollar that will remain weak. This situation will generate large undoubtedly dangers now that speculators insatiable spirit can carry trading volume figures of several billions of dollars with highly risky positions, and that a sudden change in the dynamics of the Japanese currency and monetary policy from the BoJ can take them to a crisis situation. The subprime crisis showed that for damage to the financial system only just hit at the right point and fears that increases in this type of speculative operations. But the yen not only It will be threatened by the attitude of the investors who will take advantage of the cheap credit to bet on profitable investments in other currencies. Prospects for medium-term yen weakness will be reinforced by the desire to replace it with a stronger currency, which will reduce your demand, mainly at the regional level.

This is without a doubt the opportunity awaited by the yuan to increase its influence in the region in its goal to settle as a reserve currency international, objective for which, it still has long way to go although not can doubt that comes forward in that direction. While the Japanese economy not recover forces and dispel deflationary pressures, the situation that will face is high fragility with one no less than a new relapse risk. In this context, a positive element for the economy was falling for the second consecutive month of unemployment that stood at the month of September at 5.2% of the economically active population (PEA), with an amount of 3.63 million unemployed. Although it is not enough, utmost to lift Japan from this situation as uncomfortable. We will meet again tomorrow, Horacio Pozzo – take this low to buy? in Global value bought when we see that the trend of the price of a stock starts to enter in a bullish phase and we got on her newborn after verifying it. Get your subscription to our Global value investment report and start earning from the beginning of the rise of the shares. Click here to purchase our Global value report.