With sharp rise in consumer spending and fall in unemployment Bank of Japan closer to rate increase than ever – time to go long on yen?
Sam Adelton
May 28, 2007

The Japanese yen is at the bottom. The Japanese economy is rapidly expanding domestically while the exports are hurting due to slowdown in US economy, Japan’s biggest customer base.

Japan's jobless rate unexpectedly fell to a nine-year low and households increased spending for a fourth month in April, suggesting consumers will help extend the economy's longest postwar expansion.

The Bank of Japan is closer ever to raise the rates than ever. This can be very bullish news for Yen. At the same time, the weakness in housing and manufacturing is making the Federal Reserve think deeply if a rate cut is needed.

Japan's largest manufacturers said in March they faced the worst labor shortages in 15 years. In Aichi prefecture, home to Toyota Motor Corp. and its suppliers and subcontractors, there were more than two jobs on offer for each applicant last month.

This is a clear sign that the deflation and disinflation are on the verge of ending in Japan while the same starts in America and rest of the world.

Rise in exports demand pushes Industrial Production up in Japan – Bank of Japan ready to make a move
Marla Guthrie
Rise in exports demand pushes Industrial Production up in Japan. It is not only the unemployment, consumer spending, but also the rise in export demands that is making Bank of Japan considering raising the rates in Japan.
READ MORE>>

With sharp rise in consumer spending and fall in unemployment Bank of Japan closer to rate increase than ever – time to go long on yen?
Sam Adelton
The Japanese yen is at its bottom. The Japanese economy is expanding rapidly domestically while the exports are hurting due to slowdown in US economy, Japan’s biggest customer base.
READ MORE>>

Like the Iraq war, American selection of World Bank presidency lacks transparency – Zoellick is the front runner
Sonia Joshi
America pleads for globalization. It tries to make business sense from outsourcing and open trade policy. But the same Administration is cold-shouldering the transparency in the selection process of World Bank President.
READ MORE>>

The 1031 bubble in real estate ready to pull the market down drastically
Peter Oberois
It lets investors who sell investment properties defer capital-gains taxes if they invest the proceeds in ‘like kind’ property within 180 days
READ MORE>>

Analytics point to overstated job growth in official employment data – was it deliberate?
Sam Adelton
Is possible that underemployment in the economy has created a massive flaw in the way job growth is calculated.
READ MORE>>

Tapping the Internet and relocation market in selling your home in difficult times – here are some tips
Maria Hernandez
It is a difficult time for the home sellers. The realtors are not letting the how owners get out of the selling contracts. They are forcing homeowners to reduce prices slowly but steadily. Here are some tips what you can do:
READ MORE>>

What happens to world stock market if Chinese market crash – where does Dow go?
Peter Oberois
However, Japan, US, and EU have their problems. That will affect the respective stock market. The US stock market will resume its bear trend that started in year 2000 and make new lows before the end of 2009.
READ MORE>>

MORE ARTICLES >>