Recap 2-24-12

Main Items:

  • U Michigan Confidence for Jan was revised higher to 75.3 vs 73 exp and 72.5 prev
  • Li Daokui, an advisor to the PBOC, said the yuan is likely to maintain an upward track for the next 12-18 months before reaching a balanced level.
  • JD Power thinks the auto industry is poised to have its best year since ’07 and raised its sales forecast from 13.8M units to 14MM

Overseas:

  • UK GDP declined -0.2% QoQ in 4Q as exp. Better than expected Govt Spending, net exports and private consumption offset sharp weakness in Gross Fixed Capital formation.

Upcoming Data:

  • South Korea Business Survey

Commentary:

The Yen knife catching exercise ended with some cut fingers, as USDJPY surged through resistance & Wednesday’s highs. I still think the underlying factors for a short holds, though. So the plan is to do some bandaging, stick one finger up at $¥, go back to charting school, and risk some of the remaining fingers at a later date.

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