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Wall -- most of the markets are closed today money is still moving now is your chance to make money.
A currency is joining me now for a Fox Business exclusive interview as -- the -- Forex dot com senior.
Currency strategist -- on.
As the rare currency markets -- certainly are moving today and currencies have been of great interest of course.
With regards to the European currencies and then -- of course is Japan big -- today Bank of Japan.
More concern about deflation.
In that country what are you reading right now on the country of Japan and the yen in.
He's been very very aggressive in terms of easing the Japanese yen he wants -- -- dramatically weaker yen.
He believes that that's really going to be the major thing to turn around in the Japanese economy.
Saying what -- I mean this this is it's almost a currency war if you will.
I mean are getting into a very crowded space and with the pressure that we've seen in particular on the dollar.
Over the last two years in -- mater what that means perhaps absolutely -- -- there's there's started to step on the -- the fat you know the Fed's really been been you know priming the pump here printing money printing money printing money and in.
Efforts to keep the dollar is -- as possible and this risk off type scenario market.
So now some of these other central banks are now starting to fight back a bit and the Bank of Japan has probably been the most aggressive in doing so.
Will with some easing their -- dot.
-- they're gonna do worry is that is that what you think is going to be kind of a headline here yeah I mean eight -- -- -- victims indicates that they going to be raising.
The inflation target to about 2% from 1% here right now.
They're probably get -- you know extend their asset purchases -- -- ten -- here today.
There's even at some talk of them reducing their interest rates to 0%.
Albeit from a very low level is -- point one right now.
Out but but they're really talking about a time different measures to dramatically weakening enemy hobby was out this weekend saying we wanna see Dolly and and -- hundred.
Not -- so obviously you Robles currency war there other countries involved a particular take on the Mexican peso because also there is concerns about the Mexican economy big manufacturing economy which means a lot to US companies at the same -- of the peso.
If there is more pressure on that currency what does that mean for a so the -- has been pretty huge thing because that their Central Bank Lessig did a little bit of the 180 because it -- is.
They're expecting that there are going to be raising interest rates sometime here in 2013.
And they kinda just pulled the rug out underneath -- saying you know there's the potential that we might actually start to.
You know maybe reduce interest rates -- -- I think on radar -- hot to Ben Bernanke -- and that's about -- I mean you never know it is definitely something that that caught participants by surprise who were -- and some previous 2012 lows there in terms of dollar Mexico's so.
It will be mission to see if that trend continues but Mexico I think as a currency that we still wanna be going into going forward you know one of the things that we look at a daily basis during the market -- is what the -- is forgiving vs the dollar.
All surprise me that the Euro never went Bullock -- -- 22 were so against against the dollar and now you've got the pound I know you don't like.
The pound some curious -- -- higher playing out over in Europe right now.
-- very interesting dichotomy because you know did just a year ago everybody thought that the Euro was going dramatically lower gonna go sub one wanted to 115 and talk of Harry out on -- car I expected it and it didn't and and I think the major aspect that is what was it in relation to men and we're talking about it released to the dollar and what the Fed keep on doing that kept on printing money and and.
The ECB contrast really has not print the money and money that they have been printing has been sterilized them so they're not injecting new fund -- Whereas but I think what's going on with sterling you know they're gonna probably be on the brink of -- triple dip recession come this Friday -- in their fourth quarter GDP figures.
You know -- their economy really isn't doing that well the BO is probably gonna have to -- to stimulate that economy going forward.
And we're probably be talking about for the rest of purchases out of them over the next couple you know Chris -- -- -- prison IPO play your friends your end and then in New York hit the trade currencies -- mean that is their job that trade currencies on behalf of the bank -- -- affects obviously investments investment banking deals eccentrics afterward for the -- -- -- for the retail investor.
Do you think -- there's become more of an interest now.
In investing in the currency market.
Playing the spreads I mean it's very risk it's very volatile but to think that we're saying it's a change in -- but we're definitely seeing -- Greater exposure to the FX market don't know we've seen over the years and and a lot of this has to do with some of the correlations that these currency pairs actually have to some of these other markets.
You know for example BS and 500 just breaking -- to fresh highs that we haven't seen in quite some time.
You know you can look at -- trillion dollar if you want -- in a way of playing matter you know with tenure interest rates may be starting to creep up a little bit higher.
Dollar yen's been a hot topic with that since it has a pretty high correlation ten year treasury -- so.
It's not only a market that you can come to to invest in just the -- the currencies themselves.
But it's also ways in which you you can potentially hedge your exposure and some of these alternative asset classes which you might be more finally what I've heard.
Investors say you know -- it in order to play the currency markets you actually should be making.
Investments with other currencies we doing that as.
Americans as the dollar that bad guy really need to be looking at using the end of the Euro for example did you wind gusts at -- And yes and that time is now so you you have to be very careful in terms of when you're picking two to invest in these alternative vehicles investing in these foreign markets you know.
The Nikkei has been on fire sense you know that this new regime narron in -- -- is come on board in a soaring about 20% over the last couple of months.
You know a lot of talk has always been about China or some of these other emerging markets your Brazil's -- that are and so forth so.
You have to be careful in terms of when you're picking to invest things -- the markets to a city FX exposure.
But if you don't want to necessarily pick and choose -- to you can be invest in those markets and then and then do some things you know with currencies with us.
-- -- of the on this site visit you'll hear someone say well you know that that the dollar is the world's currencies but that is in jeopardy the dollar's falling out of favor.
How much you do you put into that how much -- Well you know let's consider how much stimulus that we've already provide into the markets and let's really consider that.
You know the dollar really has declined that much -- -- relative to most of these major currency pairs you know if they weren't doing all this monetary printing that we're doing right now.
The dollar would be -- soaring right now.
We'd be talking probably about a Euro dollar back towards parity to be talking about you know sterling may be at 125 we'd be talking about.
You know -- -- talked about we're being again some other -- but commentary about it it could definitely be something where we see a much stronger dollar.
And while a lot of people here in the states it will not be a good thing.
You gotta be very very careful about that deflationary spiral and that's been the real reason why Bernanke doing what he's -- -- why is doing this printing is to keep us out of deflation housing what you're gonna tight lid on the show and also the fact you've got many of corporations multi -- that benefit from that got silver dollar we've got to remember that our -- -- their -- -- senior currency strategist -- you very much interesting topic.
Different for us thank you very much treasury.
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