CFTC/NFA Disclaimer Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results. CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN > EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS SITE, SUPPORT AND TEXTS. OUR COURSE(S), PRODUCTS AND SERVICES SHOULD BE USED AS LEARNING AIDS ONLY AND SHOULD NOT BE USED TO INVEST REAL MONEY. IF YOU DECIDE TO INVEST REAL MONEY, ALL TRADING DECISIONS SHOULD BE YOUR OWN.
Transcript
CFTC/NFA Disclaimer
Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the
futures and options markets. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell futures, stocks or options on the same. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past
performance of any trading system or methodology is not necessarily indicative of future results.
CFTC RULE 4.41 - HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT
REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN > EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN
MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO
ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL, OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE DISCUSSED WITHIN THIS SITE, SUPPORT AND TEXTS. OUR COURSE(S), PRODUCTS AND SERVICES SHOULD BE USED AS LEARNING AIDS ONLY AND SHOULD NOT BE USED TO INVEST REAL MONEY. IF YOU DECIDE TO INVEST REAL MONEY, ALL
TRADING DECISIONS SHOULD BE YOUR OWN.
Power Hour
Table of Contents
Daily Market Analysis Daily Strategy Analysis (Live FxAlerts)The Economics of Natural DisastersMarcello Ducille’s Underground System DemonstrationQuestion & Answer Session
The Economics of Natural Disasters
It is quite easy to vividly visual the devastating effects of a natural disaster and how that would directly translate to similar effects on the economy of the immediately effected area. But what is the economic pattern following natural disasters in those areas? And what of surrounding areas or intertwined economies?
The Economics of Natural Disasters
Until 1873, the yen was a dollar unit, like all dollar units, descended from the Spanish Pieces of Eight and more or less assigned the same dollar value unit as all currencies world wide.The yen lost most of its value during and after WWII which cause some instability and then price fixing of the yen at ¥360 per $1 through a United States plan in 1949 in a movement to stabilize the Japanese economy. Following the US measures to devalue the dollar in 1971, Japan agreed to a new, fixed exchange at ¥308 per US$1. However, the new fixed rates of the Smithsonian Agreement were difficult to maintain in the face of supply and demand pressures in the foreign-exchange market. Therefore in 1973, the rates were abandoned, and the major nations of the world allowed their floating currency which is the basis of the Forex.
The Economics of Natural Disasters
In the 1970s, the Japanese government and businesses became concerned that a rise in the value of the yen would hurt export growth by making Japanese products less competitive and therefore damage the industrial base. Japanese government therefore continued to intervene heavily in foreign-exchange marketing (buying or selling dollars), even after the decision to allow the yen to float. Aiding in this effort, the Bank of Japan maintains a policy of zero interest rates to discourage yen investments and effecting the “carry trade” with investors borrowing yen to invest in other currency and further devalue the JPY In 2007, The Economist estimated the JPY to be 15% undervalued against the USD and as much as 40% undervalued against the EUR..
The JPY has one of the more seasonal patterns of any currency shown here in monthly reports of rates 1999-2005
Ex. One who sold USD/JPY at the start of each August and closed out the trade at the end of the month would have made over 2200 pips in the 7 yr span of 1999-2005. That is a pretty strong recurring theme.
Image courtesy of fxtsp.com
Closing Notes
Though FxEdge is based upon technical analysis and pattern recognition for trading decisions, it is important to be aware of
globally impactful outliers such as natural disasters.
Are you part of the FxEdge Family? Become a Fan of myfxedge.com on Facebook and get free tips!
![Disaster Recovery Center (Disaster Assistance … Library/Disaster Recovery Center...Disaster Recovery Center (Disaster Assistance Center) Standard Operating Guide [Appendix to: ]](https://static.documents.pub/doc/80x56/5b0334ba7f8b9a2d518bd9d9/disaster-recovery-center-disaster-assistance-librarydisaster-recovery-centerdisaster.jpg)
