Money Managers Are Reconsidering Their Positions

Limassol, Cyprus, November 22, 2007 --( Money managers that use the profitable but risky strategy of borrowing low yielding currencies such as JPY and investing in to higher yielding currencies are reconsidering their positions as the current US economic conditions send ripples across the globe.

“These are very interesting times and the outcome may not be pretty. We expect this trend to continue and USD/JPY below 100.00 would not surprise us at all,” said Markos Solomou, Easy Forex Dealer.

The JPY surged to a low yesterday amidst a significant rise in risk aversion. Fears of further losses from the ongoing credit crisis overwhelmed the markets once more. The market is already witnessing retail giants posting warnings of dramatically reduced earnings indicating the beginning of a slowing growth in the US economy. This does not bear good news for the dollar or any dollar denominated securities, US markets will eventually feel the pinch and global appetite to risky investments reduces.

In essence a reversal in such money management strategies means the buying back of JPY and the sell of the higher yielding assets. In essence the JPY has become a measure of market risk appetite. When JPY is strong Risk aversion prevails and when JPY is weak risk appetite resumes control.

The Easy-Forex trading platform was founded on the idea of bringing currency trading to the general consumer. Easy-Forex was the first online Forex trading system allowing clients to trade Forex as a consumer product and is one of the only platforms enabling a trader to start trading immediately. For over six years, Easy-Forex has been revolutionizing foreign exchange trading in more than 150 countries. Easy-Forex is licensed in Australia, the EU, the UK and the USA and they have nine physical office locations around the world. To find out more, please visit

Jason Ballor
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