Thursday, June 11, 2015

In Search of Market Equilibrium ll

The timely fashion how the BOJ Kuroda's statements came soon after the USDJPY registered @125.50 levels was no less than impeccable market timing. Followed with RBNZ cutting its rates that led a considerable price decline for the NZ Dollar reaching a recent low @0.7009 as of this writing; had most currency analyst trying to weigh the volatility of the market increase over a short period of time difference.

The financial markets landscape on interest rates, currency rates weakness and strength, central banks monetary policy, global economy and stock market performance is  being shape and adjusted based on the current market and global conditions taking place. In search of equilibrium may take a longer time frame to achieve. For now there maybe some difficulty to see this through as each major economic power has their own agenda and the status quo of the global order is likewise now being challenged.

Relatively, the strength of the USD would remain stable as the over all reserve currency, while the rest of its currency basket would make their respective rate adjustments that would not be left behind as new financial structures for emerging economies are being opt in the equation of the current system. The general outlook for the USD is still positive with the recent report of retail sales and the expected rate increase for the year is still on track.

Hence, the outlook for  the Asian region would likewise look stronger and resilient moving forward while trying to trail the US stock market performance. With a relatively milder hiccup for the 2nd biggest economy as it slows from its previous fast-paced growth that reached a cooling period to this point in time. China's Shares have accelerated more than 50% ; where government would be able to take calculated measures to address any possible contraction while maintaining growth outlook in check at tolerable limits as well.

This just states that every trade strategies made while trading these markets would have to be made flexible to any sudden changes in market conditions. For as long as any trade positions made are within an effective net positive trading result can be achieve then and only then would one consider to stay within the course to maximize market potential or simply just cash in and wait for the next market mover.

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