chart of the day

I went back to see my family in Chicago this past weekend and I was talking to my brother-in-law. He is an engineer for a big manufacturing company who told me that their company has not only brought everybody back from earlier layoffs, but they are also aggressively hiring. Why?

The weak US Dollar.

You see, my brother-in-law's company was selling to customers outside the US. They found that with a weak USD, their products are all of a sudden pretty competitively priced in the world's markets. So, while some see the USD losing it's place in the world, others see the chance for the US exporters to regain their place and start hiring to meet the world's demand for their goods.

Here is a daily chart of the USD/JPY. This chart covers the recent down trending move from the beginning of April to today and is a good gauge of the USD weakness. While this pair seems to taking its time moving down, it is still in an obvious downtrend. Traders should continue to look for selling opportunities, especially on a move down through the previous low just below the 88.00 level. An SSI reading of +4.93 doesn't hurt either. A move up through the October 27th high in the 92.37 area would mean a change in both sentiment and my current selling bias.

DailyFX provides forex news on the economic reports and political events that influence the currency market.
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