With ongoing fear surrounding the nuclear power plant in Fukushima and the cessation of manufacturing output from large companies like Toyota, the Yen appreciated to a five year high against the dollar. The central bank of Japan recognizes the danger of deflation, which makes Japanese exports more expensive for other countries. This could cause further problems for the Japanese economy, which could quite possibly slip into a recession.
In an effort to combat this unwanted currency appreciation, the Japanese central bank took steps to increase the supply of money within the economy. This has allowed the Yen to appreciate by over 2% after yesterday's close. The Forex Robot team still believes that investing against the Yen over the long term is a wise investment.
Ceasefire in Yemen?
Oil prices decreased today after news outlets reported that Gaddafi agreed to a ceasefire against a popular rebellion throughout Yemen. Gaddafi's official "announcement" took place after the UN security council and the United States agreed to take all necessary measures to protect Yemenite civilians. These measures could include a no fly zone, the bombing of aircraft hangers, and targeting pro-Gaddafi military assets. Despite Gaddafi's announcement, news correspondents continue to witness military clashes between rebels and pro-regime militants. In response, Western nations are skeptical of the country's affirmation of abiding by the ceasefire. Oil prices continue to be traded with great volatility.
The Forex Robot team is completely opposed to the intervention of the United States in this ongoing internal matter in Yemen. In our view, the Western world simply doesn't appreciate nor understand the complex factors that dominate Middle East politics. Most Arabic countries have populaces that are align themselves based on religious, ethnic, or tribal lines, instead of nationalism. Gaddafi might act similar to a Looney Tunes character, but at least he is opposed to an Islamic theocracy and support for terrorist groups like Al Qaeda.