- 16 Aug '17 at 11:03 pm #11225TradersComKeymaster
[article]143[/article]17 Aug '17 at 4:53 am #11226ClemSnideParticipant
With all the fear and gloom about Japan and their inflation they seem to be doing just fine trade wise. 110 USDJPY seems a gift . What do the US trade reps have to say about that as NAFTA kicks off.17 Aug '17 at 5:16 am #11228Shane CameronParticipant
Japan with a strengthening currency managed to increase exports. I know it wasn’t (yen) crazy strengthening, but I’d like to understand why US exports require a weak dollar, but for other countries, it’s not necessarily the case.17 Aug '17 at 4:56 pm #11231
[quote=”sdot54″ post=958]Japan with a strengthening currency managed to increase exports. I know it wasn’t (yen) crazy strengthening, but I’d like to understand why US exports require a weak dollar, but for other countries, it’s not necessarily the case.[/quote]
Much to do with efficiency – when the U.S. dollar was weak for all those years esp the last 7-8 there was nothing to do make export industries more efficient compare the GM bailout to German cars and Japanese cars for example.
We have become a massive service economy17 Aug '17 at 5:03 pm #11232CautiousInvestorKeymaster
[color=blue][size=5]^^^^ +1 on excellent question and WELCOME to forums 🙂
I will try to answer also: WEAK DOLLAR improves buying power of other nation … It creates a K-Mart blue light special for trading partners. A strong $$$ gives other nation less buying power for needed goods & services.
For example, when EURO is at $1.07, you can buy more “widgets” with 10,000 EUROs …. than when EURO is at $1.14 … Fluctuation in carry trade currency is important to trade balances, volumes, and profitability. Nations may increase inventory under favorable trade conditions to beef up volumes
Hope this helps :)[/size][/color]17 Aug '17 at 5:06 pm #11233CautiousInvestorKeymaster
And OIL is one of the REAL CURRENCIES of world … even though it’s seen as commodity … the value of it impacts everything — including currency carry trade17 Aug '17 at 5:18 pm #11234
Oil at these levels and a stronger yen is great for Japan – imports were also down as a result. The point is I was making Germany and Japan adjusted in times of their high currencies America didn’t through bailouts, labor practices etc
You are also right a higher currency makes for cheaper imports and stronger purchasing power in saying all that Apple takes advantage manufacturing in China for example and effectively exporting back to America to make a squillion ..17 Aug '17 at 6:55 pm #11239
The $USDJPY 50% midpoint of days trading range at 110.01 was breached again afer rumors of Cohn resignation and denial. Now trading 109.85 after 109.65
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