Saturday, June 8, 2013

USD/JPY Dollar/Yen Versus SPX Daily Chart Moving in Lock-Step

The central bankers control the markets. Equities weaken as the economic data continues to disappoint casting doubt on the global recovery. At best, the global economy is treading water moving sideways. Equities are kept buoyant by the Fed, BOJ and ECB easy money policies. The chart shows this obvious interplay and the BOJ easing program created the all-time highs in U.S. equities one month ago. The dollar/yen (blue) moves in lock-step with the S&P 500 (green).

The BOJ money printing weakens the yen which sends dollar/yen higher; it is that simple. Weaker yen = dollar/yen higher = equities higher. Stronger yen = dollar/yen lower = equities lower. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.