Playing the I fund

[LA_Guy]

My guess is Nikkei will be flat today awaiting the FOMC decision.

 

[roguewave]

You are correct. The web site I looked at rounded it off (a currency conversion). I was getting frustrated with CNN Money because when the dollar drops against the yen it shows as a negative but when the dollar drops against the Euro it shows as a positive. Yahoo Finanace gives the raw number but not the change (without pulling up the chart - which doesn't show the %change) - so I tried a different site that I was not familiar with. My bad.

Anybody got a good website that charts and gives numbers in one stop for currencies?

If you're interested in real time quotes.

http://www.fxstreet.com/nou/graph/liverealtimequotes.asp

 

[Spartan]

In the last five years the Japanese Yen has only gained around 2-3% on the USD, where is the Euro has gained over 25%

In the coming months we will see a stronger yen from BOJ and a stronger Euro also. When US stops raising rates just as BOJ and ECB hike theirs, the I fund will have a greater runup than YTD.

 

[SkyPilot]

Nikkei down 1.39% and the majority of the EAFE indexes are down a bit as well. The USD is down slightly to flat. Overall, this could mean a lower open for the EFA this morning.

 

[Master]

Today, it is very likely that we will have a late posting at MSCI, and fair valuation from that value to account post FOMC meeting changes in the USD value.

 

[Brett]

The Nikkei has been fairly flat since early April, I think the upward drive in the I-fund has been driven by the declining dollar at this point. I'm guessing that a raise in the fed rate will help the dollar and hurt the I-fund. I might have to make a decision early tomorrow.

 

[Pilgrim]

The Nikkei has been fairly flat since early April, I think the upward drive in the I-fund has been driven by the declining dollar at this point. I'm guessing that a raise in the fed rate will help the dollar and hurt the I-fund. I might have to make a decision early tomorrow.

The raise in fund rate is priced in and will do nothing by itself. Their language (soft versus hawkish) is everything. See:

http://www.marketwatch.com/News/Story/Story.aspx?column=Currencies&siteid=mktw&dist=

 

[Master]

MSCI just posted the EAFE at -(0.362%). However, the dollar has weaken a bit in the last few minutes.

 

[Spartan]

There should be a large enough move off of the wording to cause a FV tonight. Lets watch the dollar and the EFA.

 

[Brett]

Good article Pilgrim, I need to learn more about foreign and currency markets.

 

[Spartan]

Fed Raises Key Interest Rate to 5 Percent
Wednesday May 10, 2:23 pm ET
By Martin Crutsinger, AP Economics Writer
Federal Reserve Raises Key Interest Rate to 5 Percent, the Highest Level in 5 Years

WASHINGTON (AP) -- The Federal Reserve on Wednesday raised a key interest rate to the highest level in more than five years but signaled that it may pause to assess the impact of its string of rate hikes.

The Fed boosted its target for the federal funds rate to 5 percent. The funds rate, the interest that banks charge each other, stood at a 46-year low of 1 percent when the central bank began raising rates in June 2004 to keep inflation under control.

In its statement announcing the decision, Fed policy-makers indicated they may take at least a brief pause in pushing rates up further. It said the "extent and timing" of further rate increases would depend on future economic data.

 

[Spartan]

USD looks like its seriously dumping vs the euro and yen. Today may be a FV upday. As I thought, I fund is the only place to be these days.

I thought the fed would be neutral, but he came across dovish.

 

[Master]

EFA is only at -0.07% at 3:11 pm, recovering from a dip prior to the FOMC announcement. We might lose just a penny or even none!

 

[ayla]

I'm seeing I fund at -.362%. at 4:43pm (Eastern) on the msci.com equity site at:
http://www.msci.com/equity/index2.html Not too bad.

Sorry to wish you guys poor returns but I am glad it is down. I'm hoping it will be down tomorrow too so when I get back in, I can buy it cheap (or cheaper).

 

[Spartan]

I dont see anything being down tomorrow... except the dollar

 

[Spartan]

AORDS opened up. Stronger dollar should help JP exporters. Looks good.

 

[walli1]

AORDS opened up. Stronger dollar should help JP exporters. Looks good.

In English please. Thanks

 

[Spartan]

Australia all ords, opened higher. Japan is higher today. Though I dont think that the I fund will be higher. We will probably lose to the USD unless theres some major selling later on.

 

[robo]

Dollar is rallying.

http://www.kitco.com/market/

 

[JOVARN]

http://biz.yahoo.com/ap/060511/gold_prices.html?.v=1
SYDNEY, Australia (AP) -- Investors pushed the price of gold to new 25-year highs in Asian trading hours Thursday, apparently viewing the U.S. dollar's recovery as a short-term response to higher interest rates.

"With all the rumors still about of China and the Iran issue still playing on people's minds, the dollar's not really driving gold at the moment," said Darren Heathcote, trading head at Rothschild Australia.