I-Fund: A TA Short Term Outlook

tspgo_com

Active member
imported post

It seems it is heading back into the channel. When it gets above the trend line it would be a good entry for at least 30 points...

ifund050614talk.gif
 
imported post

Japan to reduce dollar holdings in forex reserves - finance official
06.26.2005, 06:56 AM

TIANJIN, China, (AFX) - Japan hopes to rebalance its foreign exchange reserves with less US dollars when the dollar regains enough strength to withstand such a reform, a Japanese finance official said at a meeting of Asian and European finance ministers here.

Hiroshi Watanabe, Vice Minister of Finance for International Affairs with Japan's Finance Ministry, said Japan did not intend to switch its holdings of US dollars into other currencies at the moment.

'But if the dollar is very strong and there is going to be no negative impact from the move, in that case, we're going to move,' he said.

Japan has the highest levels of foreign exchange holdings in the world, totalling 842.47 bln usd in May.

Critics claim the heavy reliance on dollar-denominated assets within these holdings leaves Japan too exposed to volatility in the dollar and partly finances a large and unhealthy US deficit.

Watanabe said Japan in future wants to align the currency mix of its foreign exchange reserves with that of its trade settlement account, taking into account the increasing importance of the euro.

European Commissioner for Economic and Financial Affairs Joaquin Almunia said on the sidelines of the same meeting that he had not raised with Japan the euro's role in Japan's foreign exchange holdings.

He said European authorities are not promoting the use of the euro in the world.

However, China's Premier Wen Jiabao spoke at the opening session of the Tianjin meeting of the need to maintain the stability of the major reserve currencies.

He also said the role of the euro in achieving international financial stability should be supported.

Almunia said after Wen's speech: 'It's up to the markets and up to the players to decide if they want or if they don't want to have euros in their portfolios.'

Increased buying of euro-denominated assets could see a rise in the currency's value and further erode the competitiveness of European exports.

A recovery in the US dollar, however, saw the European currency drop last week to its lowest levels since last August.

Almunia said he has no concerns about the current price or volatility of the euro.

'If you look at the present exchange rate for the euro, it's very close to the average of these trends so we're not concerned about that. We think that is normal in a world of flexible exchange rates.'

On the yen, Watanabe said he did not expect a significant movement in Japan's currency if the yuan revalues.

China's Wen earlier today recommitted his country to gradually adopting a more flexible exchange rate, without saying when.

The yuan is deemed by China's biggest trading partners to be too cheap and is expected to appreciate if revalued, possibly contributing to a rise in other Asian currencies.

Watanabe said the yen is only linked to the Chinese currency through Japan's exports to China and the relationship between the yuan and the currencies of Japan's other trading partners, including the US and Asian nations.

'I think there will be no direct impact if the yuan appreciates,' he said.

*******************************************************************

off tt...stand by my theory that the dollar and bonds are being pumped while the asians dump it for the euro and euro denominated bonds.

When this portfolio reshuffling is over, you'll see the buck drop like a ton of bricks and same with US treasuries.

 
imported post

tecknobucks,

When do you expect Japan and other nationswill sell US Dollars fast enough to makethe US Dollar drop again?
 
imported post

Looking to move into the I-Fund?
The US Dollar is currently at it's highest value in quite a while. How much has this run-up in the dollar affected the I-Fund? Will its value now undergo a normal correction or is the dollar ready to "drop like a ton of bricks," if it now descends off the top of the value curve. If its ready for a downward trend , the I-Fund will benefit?
[align=center] British Pounds to 1 USD(invert,data)


clip_image003.gif

[align=center]120 days[/align] latest (Jul 7)
0.574119
lowest (Mar 8)
0.51835
highest (Jul 7)
0.574119


[/align]
[align=center] Japanese Yens to 1 USD(invert,data)


clip_image005.gif

[align=center]120 days[/align] latest (Jul 7)
112.08
lowest (Jan 19)
102.52
highest (Jul 7)
112.08


[/align]
[align=center] Swiss Francs to 1 USD(invert,data)


clip_image007.gif

[align=center]120 days[/align] latest (Jul 7)
1.2978
lowest (Mar 11)
1.1501
highest (Jul 6)
1.3041


[/align]
 
Back
Top