Archive for December, 2013

Reuters: FOREX-Dollar trades near five-year high vs yen in wake of Fed

“Net-net, the Fed’s announcement yesterday was hawkish, not dovish,” said Stephen Jen, co-founder of London-based investment firm SLJ Macro Partners.

“The dollar should continue to appreciate, and its strength is likely to broaden out over time, as long as the US economy continues to recover,” he said.

Read the original article on the ‘Reuters’ website.

FX Street: The 30-year to be auctioned today will be the last this year

“Stephen Jen, managing partner at SLJ Macro in London, maintained that while March 2014 ‘is the most probable date of the first tapering … the second-most probable date is next Wednesday.’” Jen said the Fed claims to be data-dependent, but if that’s true, then next Wednesday it is. “The main reasons for them not to start tapering until March are mostly tactical and psychological. Given the Fed’s track record in mis-managing expectations with their forward guidance, I would not be surprised if the Fed surprised markets, again.”

Read the original article on the ‘FX Street’ website.

Bloomberg: America’s Role as Consumer of Last Resort Goes Missing

The U.S. has provided the thrust for worldwide growth in every recovery during the past 40 years, according to Stephen L. Jen and Fatih Yilmaz of SLJ Macro Partners LLP, a London-based hedge-fund firm. In 1999, for example, the U.S. accounted for 48 percent of the global economy’s expansion after Asia’s financial crisis, according to data compiled by Bloomberg. The U.S. will lead the way again because of its innovation and technological prowess, Jen and Yilmaz conclude in an October report to their investors.

Read the original article on the ‘Bloomberg’ website.