Looking longer term on a monthly chart this is the point where EURUSD probably heads lower over a multi month possibly year basis. Pretty brave call Kick when the rest of the world have buried the dollar for good.
This call is largely based on my deflationary outlook for the world economy as a whole - but more on the deflation and inflation debate later.... take note, you better sort this out in your own head for the sake of your investments. Read more on this with Mr Deflation himself Mish: Is pent up inflation from Fed printing waiting on deck....
The Nikki has followed suite this morning and is as of this writing 2.2% under water. I always feel the Japanese are a bit more astute than the rest of the world being through a deflationary nightmare for the past 20 years. Hang Seng (biggest casino in the world) down 0.5% ...only - wait till this puppy start gathering some steam to the downside.
Other news is the G20 are wrapping up what Bankers will be paid in the future (great when you end up getting a government salary) -"World leaders are poised to crack down on banker pay and better coordinate economic policies as they seek to temper the excesses ...." G-20 Nears Agreement on Banker Pay, Policy Coordination as Crisis Recedes
If you are in the banking business you better start looking at ways of squeezing more money out of the retail side - high risk exotic derivatives and the like are probably heading for the dust heap as conservatism becomes fashion. High bank fees here we come - our local big 4 have already starting squeezing this rock with 30+% increases coming through over the past year.
Expecting the JSE to open lower this morning and play a bit of catch up - yesterday being an off day. Let's see how Nedbank pans out today after my short punt: Short Nedbank ?
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