Wall Street Webcasting has prepared and provided for you an exclusive broadcast of Wells Fargo Securities own, Rich Gordon. Gordon is highly recognized for his weekly narrates regarding the fixed income strategy at Wells Fargo Securities (NYSE: WFC). This week, Gordon concentrates on the Japanese Yen vs. the U.S. Dollar.
For the fourth time since 2008, Japan is once again in a recession. Their GDP fell by 1.6% annualized during the third quarter, followed by another decrease of 7.3% during the second quarter. The Yen has lost 10% of its value against the U.S. dollar since the middle of October. Expansive QE is the only cure for Japan’s extended economic despair. In contrast, U.S.’s economic data is rather strong, with last month’s Payroll’s Report adding more than 200,000 jobs, which has been concurrent with preceding months. There has also been a general improvement in consumer confidence, which will contribute to a strong Christmas season for retailers.
The progress in consumer confidence is thought to be the result of lower gas prices. The 25% reduction in gas prices since September put another $30-$60 dollars/month back into the pockets of average workers. This money is unanticipated and so consumers spend it, putting money back into the economy. The 10-Year Treasury Yield consolidated in at the 2.30% mark. In treasuries, the lack of net change is notable because U.S. growth prospects have improved over the last few months, while the rest of the world is declining.
To hear a more in depth explanation of the recent trading patterns of the U.S. dollar, please tune into The Wells Fargo Securities latest video.
Please visit the following link to view the video:
http://www.wsw.com/webcast/wav/
Contacts:
Heather Capizzi, 201-683-2100
