The Tipster
FEARS over the size of Japan’s public debt have been growing since the onset of the Greek debt crisis. However, comparisons between Japan and Greece look over- done. Japan’s debt is mostly held by domestic investors, and the yield at which it can borrow is below that of Greece. This is helping ease investors’ fears about Japan and the yen is gaining ground against the US dollar. The dollar’s decline against the yen has been rapid. The current IG Index price on dollar – yen is і89.97- і89.98
Sterling has broken through various important support levels against the US dollar and is looking incredibly weak. The next major targets for sterling bears are $1.5300 and $1.4460. Capital Spreads quotes a price of $1.5422-$1.5423.
Ben Bernanke, the US Federal Reserve Chairman, addressed the US Congress yesterday after his original testimony date was delayed by snow. As expected he reiterated that interest rates in the US will remain low for an extended period. Investors were cheered by his comments and the market rallied yesterday afternoon. Low interest rates are good for equities and we could see this strength continue. Capital Spreads quotes a price of 10,387-10,390 for the Dow.