UYY - News and Analysis from Seeking Alpha 'UYY' Tag RSS Syndication from SeekingAlpha.com SeekingAlpha.com http://seekingalpha.com/symbol/uyy Disagreeing with BoJ's Latest Rate Cut http://seekingalpha.com/article/111828-disagreeing-with-boj-s-latest-rate-cut?source=feed 111828 I don’t agree with the BoJ’s decision to cut from 0.3% –> 0.1%. The cost of borrowing is not the problem here. In fact, the impetus to cut was at least partially pressure from the MoF, in what amounts to a silly attempt to ease yen-strength. The reaction has been muted, and for now, the USD/JPY isn’t likely to even recover a 90-handle.

So we have a snafu and unfortunately what appears to be the backdrop for a revisit to all out QE. In addition, the government is said to be eying taking stakes in banks again. No doubt history repeats, but this fast? Japan’s (inaccurately) so-called “lost decade” is poised to become the lost quarter-century. Deflation lives on.

]]> Fri, 19 Dec 2008 20:10:00 -0500 Steven Towns I don’t agree with the BoJ’s decision to cut from 0.3% –> 0.1%. The cost of borrowing is not the problem here. In fact, the impetus to cut was at least partially pressure from the MoF, in what amounts to a silly attempt to ease yen-strength. The reaction has been muted, and for now, the USD/JPY isn’t likely to even recover a 90-handle.

So we have a snafu and unfortunately what appears to be the backdrop for a revisit to all out QE. In addition, the government is said to be eying taking stakes in banks again. No doubt history repeats, but this fast? Japan’s (inaccurately) so-called “lost decade” is poised to become the lost quarter-century. Deflation lives on.


Complete Story »]]> DDY FXY JYF UYY Steven Towns Global Slowdown: The Yen Link http://seekingalpha.com/article/94086-global-slowdown-the-yen-link?source=feed 94086 The equity markets have taken a beating recently and the major stock market indexes are tumbling. The MSCI Pacific Asia index is off by 25% this year, of which 6% came in the last week alone, while the S&P has fallen 16% year to date.

Analysts and economists are starting to think the credit squeeze and the global slowdown will have a deeper effect on the real economy than previously expected. When the sub-prime crisis came to light, the fist estimates were that growth will pick up in the third quarter in the U.S., while the rest of the world would be unaffected (the de-coupling theory). Now, ahead of the third quarter, all the major developed economies have been affected, and some may even face a recession in the coming quarters. The U.S. situation is not too rosy either, since exports – what actually saved the economy from the brink of recession up until now – are going to fall with the global slowdown. Furthermore, some are even starting to suggest the slowdown will continue beyond 2009, as inflation will erode the economic growth.

]]> Fri, 05 Sep 2008 07:33:08 -0400 TheLFB The LFB submits:

The equity markets have taken a beating recently and the major stock market indexes are tumbling. The MSCI Pacific Asia index is off by 25% this year, of which 6% came in the last week alone, while the S&P has fallen 16% year to date.

Analysts and economists are starting to think the credit squeeze and the global slowdown will have a deeper effect on the real economy than previously expected. When the sub-prime crisis came to light, the fist estimates were that growth will pick up in the third quarter in the U.S., while the rest of the world would be unaffected (the de-coupling theory). Now, ahead of the third quarter, all the major developed economies have been affected, and some may even face a recession in the coming quarters. The U.S. situation is not too rosy either, since exports – what actually saved the economy from the brink of recession up until now – are going to fall with the global slowdown. Furthermore, some are even starting to suggest the slowdown will continue beyond 2009, as inflation will erode the economic growth.


Complete Story »]]> DDY FXY JYF UYY TheLFB Six Ways to Trade Foreign Currencies http://seekingalpha.com/article/79456-six-ways-to-trade-foreign-currencies?source=feed 79456 Trading opportunities in the foreign exchange market have expanded rapidly this year. In February Merrill Lynch and partners introduced five new currency ETNs, followed in March when Van Eck/Morgan Stanley brought four of their own. Then, in May, Wisdom Tree got into the picture with five new ETFs. These developments, along with some new wrinkles on packaged strategies , inspired me to update my earlier note in February on trading currencies (here). Here’s a brief rundown on what’s new in this corner of the exchanged traded world.

By way of review, the eight currencies offered by Rydex and described earlier, are a straightforward way of dealing in foreign exchange. You choose the currency you want to own, and buy (or sell short) the appropriate ETF. Rydex then buys that amount of interest bearing account and short-term, investment grade paper denominated in the local currency. Simple and relative inexpensive, I like this approach, especially because you earn monthly interest at rates prevailing in the host country.

]]> Fri, 30 May 2008 04:32:32 -0400 Ray Hendon Ray Hendon submits:

Trading opportunities in the foreign exchange market have expanded rapidly this year. In February Merrill Lynch and partners introduced five new currency ETNs, followed in March when Van Eck/Morgan Stanley brought four of their own. Then, in May, Wisdom Tree got into the picture with five new ETFs. These developments, along with some new wrinkles on packaged strategies , inspired me to update my earlier note in February on trading currencies (here). Here’s a brief rundown on what’s new in this corner of the exchanged traded world.

By way of review, the eight currencies offered by Rydex and described earlier, are a straightforward way of dealing in foreign exchange. You choose the currency you want to own, and buy (or sell short) the appropriate ETF. Rydex then buys that amount of interest bearing account and short-term, investment grade paper denominated in the local currency. Simple and relative inexpensive, I like this approach, especially because you earn monthly interest at rates prevailing in the host country.


Complete Story »]]> ADE BZF CNY CUD CYB DBV DDY DRR EGB ERE ERO EU EWW FXA FXB FXC FXE FXF FXM FXS FXY GBB ICI ICN INR JYN SZE UDN URR UUP UYY Ray Hendon