Tag Archives: JPY

G20 vows to avoid currency war

18 Feb

4exanalysisA single country can win for a while the devaluing commercial advantages. This operation makes imports more expensive and favors the local domestic products. On the other hand, exporters get higher profits when they change back to local currency the international revenue. But this brings prosperity measure only temporary, illusory, when trading partners respond with custom barriers or similar policies to depreciate the currency Continue reading

E.U. budget could be reduced

8 Feb

E.U. is approaching British perspective

British proposal is gaining momentum, German austerity now has an ally with a renewed bargaining power, Britain. The debate now is concentrated on a limit of 960 billion euros wich is under the European Council’s proposal of 1.03 trillion. Austere approach was supported by those who contribute more than they receive back from the EU (Germany, Netherlands, Sweden is the name most difficult). Continue reading

BOJ looks set to back 2% inflation

21 Jan

BOJ policy scenariosBank’s apparent readiness to adopt Abe’s target seen as compromising its independence

The Bank of Japan is expected to modify its monetary easing campaign this week with a 2 percent inflation target after being driven into a political corner by Prime Minister Shinzo Abe, who has put priority on beating chronic deflation.

But it remains to be seen whether the BOJ can act aggressively enough to satisfy the new Abe administration because the central bank apparently has few conventional policy weapons left in its arsenal and little hope of accomplishing the feat with monetary policy alone in any stable way.

If the independent BOJ loosens its monetary grip at the two-day meeting starting Monday, it would be the first time in more than nine years it has done so in two consecutive policy meetings, signaling a drastic approach. Continue reading

Japan’s Nikkei index is showing signs of weakness

20 Dec

This could lead to a rebound on JPY pairs if weakness apears on Japan’s  Nikkei index.

nikkei 20.12.2012 h1 chart

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