World economy talk

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EUR/USD rises above 1.37


Asian central banks buying dollars then recycle the dollars into other major currencies (specially EUR)

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so this is the effect of competitive devaluation

everyone buys dollars to weaken their own currencies

but nobody wants to hold the dollars

so they sell the dollars and buy other currencies

so somebody wiill still end up with a stronger currency

ahem!

moshi moshi

USD/JPY

[tidus1203]

And the EURO

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yes, lalo na Euro (2 posts above your post)

unlike the BoJ, the ECB is not trying to devalue the euro

the ECB isnt participating in the currency war

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Looks like the Swiss are losing the currency war. Despite their efforts the CHF is still rising. And US mananalo sa currency war! Japan has no chance, they are destined to strengthen...

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AUD din

commodity-backed currency

sabay taas AUD and gold

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The Loonie (Canadian dollar for the traders) is suspiciously very stable... Hmmm...

[Monseratto]

Don't forget to fill up your tanks.

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German Manufacturing Activity Growth Slows Sharply
http://www.rttnews.com/Content/AllEc...=B2&Id=1434181

(RTTNews) - Germany's manufacturing sector activity growth slipped sharply in September as output growth eased to a 11-month low, survey data from Markit Economics showed Friday.

Germany's got a problem

the strong euro

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But if you look through it from a bigger stand point. Germany survived a Euro in the 1.40's which was the norm before... Sa totoo lang 1.37 is not a problem...

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but it's going to be a problem

they (Germany and China) will be talking about it next week

Currency Regime On Agenda Of EU-China Summit: Germany Source

BERLIN (MNI) – Foreign exchange rates will be a topic at the
EU-China summit in Brussels next Wednesday, a senior German government
official said Friday.

“I expect that the issue of the international currency regime will
be on the agenda,” the source said. However, “not in the sense that
one will be in the dock an the other will tell him what to do,” he
added.

The current row between the US and China over currency valuations
will also have an impact on the Eurozone, the official argued.

“If two large economic powers discuss appropriate foreign exchange
rates, this naturally has an impact on us and on the rate of the euro to
the dollar and also the yuan,” the official remarked. “In that sense,
we’re actively taking part in such considerations.”

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Look at GOLD. Making more gains above the $1300 level... More bull charge due to QEII...

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monetary base

http://www.investopedia.com/terms/m/monetarybase.asp

What Does Monetary Base Mean?
The total amount of a currency that is either circulated in the hands of the public or in the commercial bank deposits held in the central bank's reserves. This measure of the money supply typically only includes the most liquid currencies.

Investopedia explains Monetary Base
For example, suppose country Z has 600 million currency units circulating in the public and its central bank has 10 billion currency units in reserve as part of deposits from many commercial banks. In this case, the monetary base for country Z is 10.6 billion currency units.

For many countries, the government can maintain a measure of control over the monetary base by buying and selling government bonds in the open market.

Fed QE2 is almost inevitable (said to begin Nov. 3)

that means the Fed will print hundreds of billions of dollars more per month

see that chart above?

that's already a tsunami of money built up in the last 2 years

much of it is still held in reserve

the Fed wants to add more

if that tsunami of money is unleashed, everything priced in dollars will go to the stratosphere

gold price is rising coz investors are anticipating a huge flood of dollars

oil price is back above $80

food prices are rising

pray QE2 doesnt work

happy weekend

[uls]

Morning

USD/JPY


yen weakens

big bets that the BOJ will intervene soon

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Whatever....

No one can stop the JPY's destiny...

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I am buying Ford shares... And no not because I am getting a Fiesta cause it just broke out today from a consolidating triangle. F has been an uptrend since the auto crisis that made the stock worth a $1. Now its a miracle story and the price will continue to go up after this huge consolidation. The moving average is 200 day. The Blue circle is today's price which it broke out...

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RBA keeps rates on hold

AUD/USD

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Ouch! That is definite bad news for AUD/USD bulls. A lot of people thought they would hike... Down 85 pips...

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BOJ cuts its interest rate from 0.1% to near 0%. What the hell? JPY falls somewhat pero still just another move just to show they are doing something rather than it will do something...

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BOJ cut overnight call rate to a range between 0% and .1% (previous is .1%)

the BOJ will also buy JGBs, corporate debt, etc (QE)

USD/JPY