Saturday, April 6, 2013

COMBO EFFECT

AS THE COUNTRIES TRY TO DEBASE THEIR CURRENCY (LIKE JAPAN) AND MORE AND MORE COUNTRIES GRAB HOLD OF THE CHINESE YAUN (LIKE AUSTRALIA) THIS IS ANOTHER 1- 2 PUCH AT THE DOLLER SLOWLY AND BUT SHURLEY THE DALLARS HOLD ON WORLD TRADE AND THE UNITED STATES INFLUENCE DISOLVE LIKE A ALKA SELZTAR IN WATER GRAB ALL YOU CAN OF THE  AVAILABLE PHYSICAL GOLD AND SILVER CAUSE THE WORLD HAS CHANGED AS WE KNOW IT AND WHEN WE REACH OUR NEW PLACE IN THE EARTH (AS A  PEOPLE) IT WILL BE AN AWESOME PLACE OF HEALTH, WEALTH AND FREE ENERGY - GNS RESEARCH

AUSTRALIA::
http://www.reuters.com/article/2013/04/03/china-yuan-australia-idUSB9E8LG01N20130403

(Reuters) - China and Australia will launch direct trading between the two currencies in Shanghai and Sydney within weeks to lower trade transaction costs, a foreign bank source with direct knowledge of the matter told Reuters on Wednesday 4-3-2013.

JAPAN:: http://www3.cfo.com/article/2013/4/cash-management_yen-currency-pair-exchange-rate-us-dollar-bank-of-japan-monetary-easing-kuroda

In just one day, the yen weakened 31% against the U.S. dollar, to 96 yen, the largest one-day move in the currency pair since late 2008.
Companies with revenue streams from Japan that aren't protected against yen volatility have a tough choice of whether to hedge now and try to minimize further losses. On the other hand, the prospect of more yen weakening could tempt well-hedged companies to take profits on in-the-money hedges that were established when the yen was as strong as 80 to the dollar.
“I advocated to clients to hedge their yen exposure when the yen was much stronger,” says Andre Ohanissian, a principal at Forex Capital Advisors. “At this point, if you take a look at what the yen has achieved and where it could go, it’s less of a one-side risk,” and therefore trickier. With the yen at 95, it could strengthen to 90 or rise to 100, whereas when it was below 80 in 2011 and 2012 “you knew the Bank of Japan was not going to let it go below 75,” he says.
The yen’s first-quarter weakening in relation to the dollar has already hit U.S. companies’ first-quarter earnings. Firms that did not hedge their yen exposure, likely from sales in Japan or financial investments held in yen (including U.S. company pension funds), are likely to show loses. But further yen depreciation is a question.

 

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