[movermike] movermike: Something To Watch In AM

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Posted by movermike:
Something To Watch In AM
http://www.movermike.com/posts/1187069244.shtml


   The Yen Carry Trade is near to blowing up. The game has been borrowing
   extremely low-yielding Japanese government debt and using the money to
   buy higher-yielding U.S. government and corporate debt and pocketing
   the difference. Lately, the Yen has been moving up against the USD.

   [1][081007FXYt.gif] 

   118 is the critical level and this evening [2]Bloomberg is showing
   Japanese Yen down to 117.915!

   Breaking below 118 would bring on selling in the USD and rising Gold
   prices and rising interest rates that the FED cannot allow at this
   time. The FED either will target interest rates as the CBs did late
   last week or allow interest rates to rise to protect the USD.
   Politicians do not want rising rates and don't give a s--t about the
   dollar. Which way will the FED lean?

   [3]Yen Carry Trade [4]USD [5]Gold [6]CurrencyShares Japanese Yen Trust
   (FXY) [7]Mover Mike

References

   1. http://images.thestreet.com/tsc/common/images/storyimages/081007FXY.gif
   2. http://www.bloomberg.com/markets/index.html?Intro=intro
   3. http://technorati.com/tag/Yen+Carry+Trade
   4. http://technorati.com/tag/USD
   5. http://technorati.com/tag/Gold
   6. http://technorati.com/tag/CurrencyShares+Japanese+Yen+Trust+(FXY)
   7. http://technorati.com/tag/Mover+Mike