If a currency were to move say about 1 percent against another currency, it would be considered a major event, so when the yen soared by over 4.5 percent against the U.S. dollar after hours, it is almost an unprecedented situation.
The soared yen soared to about 77.31 against the U.S. dollar Wednesday, giving the USD/JPY pairing an extraordinary move.
If Japanese authorities haven't intervened by the time you're reading this, we could see a plethora of speculative selling of the dollar today.
Credit default swaps in Japan have also soared, with five-year CDS on Japan being quoted at 117 basis points on Wednesday after expanding to as high as 124 basis points Tuesday.
Showing posts with label Yen. Show all posts
Showing posts with label Yen. Show all posts
Thursday, March 17, 2011
Thursday, April 8, 2010
Greece Borrowing and Gold
Gold: The New Currency
The finance minister of Greece announced today that the country will continue to borrow, even at the high interest rates which have increased of costs of attaining capital. It generates the question of how all of this will affect the price of gold, the yen, and the U.S. dollar.
Investors are again losing any faith that is left in the country, and are very unsure as to weather Greece will be able to pay off its huge debt, which are about to become due very soon.
What the sovereign debt crisis of Greece has revealed in relationship to gold, the yen and the U.S. dollar is that gold is increasingly becoming thought of as a form of currency by a growing number of people, which is the reason you see it moving in tandem with the U.S. dollar and yen on some days people are looking for a safe haven for their money.
That means there is a lack of faith in all paper currencies at this time, and while the dollar and yen will continue to be considered to be a relatively safe place for people to place their money, gold is growing in influence, and for many, is by far the safest place to put their money in economic times like these.
The Greek debt crisis has brought this to the surface for all to see.
Gold: The New Currency
The finance minister of Greece announced today that the country will continue to borrow, even at the high interest rates which have increased of costs of attaining capital. It generates the question of how all of this will affect the price of gold, the yen, and the U.S. dollar.
Investors are again losing any faith that is left in the country, and are very unsure as to weather Greece will be able to pay off its huge debt, which are about to become due very soon.
What the sovereign debt crisis of Greece has revealed in relationship to gold, the yen and the U.S. dollar is that gold is increasingly becoming thought of as a form of currency by a growing number of people, which is the reason you see it moving in tandem with the U.S. dollar and yen on some days people are looking for a safe haven for their money.
That means there is a lack of faith in all paper currencies at this time, and while the dollar and yen will continue to be considered to be a relatively safe place for people to place their money, gold is growing in influence, and for many, is by far the safest place to put their money in economic times like these.
The Greek debt crisis has brought this to the surface for all to see.
Gold: The New Currency
Wednesday, April 7, 2010
Safety Concerns Drive Gold Prices Up
Greek Sovereign Debt and Liquidity Problems Drive Gold Prices Up
After gold rose well past $1,150 an ounce today before settling below the mark, safety was the key factor driving it, and as ongoing concerns about Greece and the euro continue in the forefront, that will be the case for some time to come.
There appears to be a return to a liquidity crisis in Greece, as Commerzbank is pulling it repos with Greek banks, which coupled with the ongoing withdrawal of funds by consumers, makes this a full-blown problem which really has no where to go but the loss of liquidity.
Once news of this gets out on a larger scale and is understood as to what it means, gold, the yen, and probably the U.S. dollar will be the place investors park their money until the result of this crisis finally plays out.
After gold rose well past $1,150 an ounce today before settling below the mark, safety was the key factor driving it, and as ongoing concerns about Greece and the euro continue in the forefront, that will be the case for some time to come.
There appears to be a return to a liquidity crisis in Greece, as Commerzbank is pulling it repos with Greek banks, which coupled with the ongoing withdrawal of funds by consumers, makes this a full-blown problem which really has no where to go but the loss of liquidity.
Once news of this gets out on a larger scale and is understood as to what it means, gold, the yen, and probably the U.S. dollar will be the place investors park their money until the result of this crisis finally plays out.
Tuesday, October 21, 2008
Gold Futures Continue to Tumble on Stronger U.S. Dollar
For the eighth time in nine sessions, gold futures fell as the U.S. dollar continues to be one of the major safety choices of investors. The yen is the other choice for regular investors seeking safety.
Gold for December delivery dropped by 2.8 percent or $22 to end the session at $768 an ounce on the Comex division of the NYMEX.
Forced liquidation continues to pummel gold, along with most commodities, as funds seek liquidity.
Gold will eventually recover because of the financing of the bailout by the government of the U.S economy. Once that starts to kick in, we should see a significant weakening of the dollar, increased inflation, and gold starting to rise again. It's only a matter of when, not if.
For now though, lack of liquidity is forcing funds especially to sell gold positions. That's driving down the price of gold for now, while the dollar continues to strengthen.
Gold for December delivery dropped by 2.8 percent or $22 to end the session at $768 an ounce on the Comex division of the NYMEX.
Forced liquidation continues to pummel gold, along with most commodities, as funds seek liquidity.
Gold will eventually recover because of the financing of the bailout by the government of the U.S economy. Once that starts to kick in, we should see a significant weakening of the dollar, increased inflation, and gold starting to rise again. It's only a matter of when, not if.
For now though, lack of liquidity is forcing funds especially to sell gold positions. That's driving down the price of gold for now, while the dollar continues to strengthen.
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