By Kim-Mai Cutler and Kosuke Goto
Feb. 19 (Bloomberg) -- The yen rose against all but one of the 16 most-traded currencies as writedowns at Barclays Plc and Credit Suisse Group spurred investors to cut holdings of higher- yielding assets financed in Japan.
The Japanese currency gained most against the U.K. pound after Barclays reported a 21 percent drop in second-half profit and Credit Suisse said writedowns will cut net income by $1 billion, curbing so-called carry trades. The Swiss franc also gained as European stocks declined before U.S. government data that may show the housing recession is deepening.
``The stock market's under pressure so that's positive for the Swiss franc and yen,'' said Antje Praefcke, a currency strategist in Frankfurt at Commerzbank AG, Germany's second- biggest lender. ``We will face more writedowns in the U.S., global financial turmoil and weak economic data, which will keep uncertainty high. The yen is supported in this environment.''
The yen rose 0.7 percent against the dollar to 107.46 by 10:23 a.m. in London. It climbed 0.3 percent against the euro to 158.23. The dollar fell to $1.4742 per euro, the lowest level since Feb. 5, before paring gains to $1.4723. The dollar may fall to 99 yen by the end of the first quarter, said Praefcke.
The yen rose as the Dow Jones Stoxx 600 Index fell 1.2 percent, favoring low-yielding currencies. Japan's key interest rate is 0.5 percent, the lowest rate among industrialized economies, and Switzerland's is 2.75 percent.
Bank Writedowns
Credit Suisse, Switzerland's second-largest bank, said an internal review discovered pricing errors on bonds that will cut first-quarter profit. Barclays, the U.K.'s third-biggest bank, said second-half profit fell on asset writedowns and a slump in revenue from fixed-income trading.
The Australian dollar rose versus 14 of the 16 major currencies after central bank Assistant Governor Malcolm Edey said inflation may accelerate and policy makers considered further interest rate increases.
The U.S. currency fell 0.9 percent to 92.15 cents versus Australia's dollar, reaching the lowest level since Nov. 9. The dollar also declined against the New Zealand dollar to 79.91 U.S. cents, near the lowest level since July 26, from 79.52 yesterday.
Source of info : Bloomberg.com
Great article. It is good to look at the details of someone who has found their niche market. I have been trying to simulate your style as a trial with poor results.
ReplyDeleteWhat is 'Recession Proof'?
You can almost hear the wallets snapping shut. Folks are cutting back on their spending every way they can. According to those who know, we are either in a recession, or are about to be. I would hate to be trying to sell real estate or new cars right now. Talk about hitting your head against the wall. Ouch!
That got me to thinking of what businesses make sense during a recession. Certainly health care does. Baby boomer's are going to need every kind of health care imaginable. For all I know, economic bad times makes people sick too.
Other types of businesses that should be recession proof include vital home repairs, like plumbing, electrical, and roofing. Folks can't put off fixing a clogged toilet or a leaking roof just because they're a little short on cash.
And you know what they say about death and t.ax.es. A well-run
funeral home or a tax consulting business shouldn't be hurt by an economic downturn.
But all these jobs require training, and even certification.
And that takes time. By the time you've learned one of these trades, the recession may well be over. That got me to thinking about one business that's truly recession-proof, and you can get started almost immediately: Day Trading.
Day Trading refers to the buying and selling of stocks within the same trading day. I know what you're thinking: how can a day trader be successful when the stock market is down, day after day? Well, day traders profit from volatility - when there are big swings in stock prices, there is money to be made.
It used to be that Day Trading was only done by financial institutions with access to technology and information. Now,
almost anyone with Internet access can become a day trader, if they know what to do.
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