Simple Forex System Trading

After the job data, dollar is up slightly against yen.  BOJ is ‘somewhat’ relieved I am sure as they can at least spend some decent time with their families over the weekend before their FM summons them all back to the little room in the bank to intervene.

Via FOREX-Dollar up vs yen on US jobs data, holds steady vs euro | Reuters.

And of course, we are still ‘waiting’ for the Greek deal, if there is still one.  And rumor has it that ECB is going to cut interest rate to boost the Europe Zone lackluster economy.  Will they do it this Thursday?  The excitement and mystery will certainly keep traders glued to their iPads, Androids, and PCs.  Sorry I didn’t mention Windows phones because I was told that their market share was worse than minimal.

via FOREX WEEK AHEAD: With Greek Deal Still Elusive, Euro Awaits ECB

Just as Japan’s supply chains were poised to return to normal after the March 11 disaster, the surging yen began pummeling a Japanese economy already taking a beating from the global financial unrest.  Mitsubishi Motors Corp, which was looking to sharply increase production, suddenly halved its plan to hire about 800 temporary workers by the end of September.  In bidding competition for Southeast Asia’s first 1-megawatt thermal power plant, Mitsubishi Heavy Industries Ltd. lost to Alstom SA of France despite expectations that it would win the order.

Japanese companies are stepping up the rate at which they are shifting operations overseas.  Elpida Memory Inc., for example, has decided to move about 40% of its facilities to produce DRAM chips to Taiwan.  Power shortages and high corporate tax rates at home are also acting as a heavy drag on Japanese companies.  Motohisa Furukawa, minister for economic and fiscal policy, said that when he met with corporate executives in Osaka on Saturday, he was told, “Once companies go overseas, they won’t return even if the yen weakens.”

Risk Aversion and News Trading from Mark Meir on Vimeo.

Europe is just a mess right now.  Greek’s default on its own debt seems inevitable.  Italy can’t get their act together to cut budget.  Germans do not want to bail out Greece, Ireland and Portugal.  A German constitutional court is to issue a ruling over the legality of Berlin’s agreements to bail out Greece, Ireland and Portugal on Wednesday.  People are nervous and freaking out.  Swiss Central Bank had enough of the excessive appreciation of swiss francs and intervened the market today which caught many francs buyers off guard and incurred huge losses.  Can’t wait till what tomorrow will bring.

The euro fell broadly on Monday because people were worried about the debt crisis in Greece and the imminent trouble in Italy.

The suspension of an EU/IMF mission to Greece last week raised questions over whether Greece can cut its budget deficit enough to secure another tranche of bailout funds.

The yields of the Italian’s bonds soared to a one-month high also weighed on the euro.

In addition, Germans are not happy about having to contribute to euro zone bailouts.

Currency markets are certain to remain volatile because of the euro zone uncertainty and the fear of the second U.S. recession.