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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (15922)	5/20/2014 2:07:48 PM
From: John Pitera	1 Recommendation Recommended By Davy Crockett Read Replies (1) \| Respond to of 33421

Hi Tim, very interesting interview that David Gurwitz gave. I believe he pointed out that there will probably be a lot of turmoil in the currency markets over the coming year..... The USD Index has been in a quite tight congestion area since last Oct. This is the Longest period of time that we have been in this tight of range in the past 10 years. So it's reasonable to expect a breakout over the second half of the year. I'll see if I can post a couple of charts to ruminate on the possibilities. I do agree with Gurwitz's discussion of the war cycle and I believe that the timing of some pretty bleak geopolitical - military developments is on the horizon as we head into Q3. I've been spending a bit of time on the east coast this spring. Been a bit busy with some FX.... I've been also spending time Doing some work on Financial Risk Management - Enterprise Risk management and learning more about creating value from risk management. John

To: Logain Ablar who wrote (15922)	5/20/2014 5:33:56 PM
From: John Pitera	1 Recommendation Recommended By Davy Crockett Read Replies (1) \| Respond to of 33421

Russia, China Plan to Expand Payments in National Currencies (Tim.... this is a headwind for the USD...... the Chinese currency should eventually emerge as a significant currency for global trading....JJP) SHANGHAI, May 20 (RIA Novosti) – Russia and China are planning to increase the volume of direct payments in mutual trade in their national currencies, according to a joint statement on a new stage of comprehensive partnership and strategic cooperation signed during high-level talks in Shanghai on Tuesday. “The sides intend to take new steps to increase the level and expansion of spheres of Russian-Chinese practical cooperation, in particular to establish close cooperation in the financial sphere, including an increase in direct payments in the Russian and Chinese national currencies in trade, investments and loan services,” the statement said. The two countries are also set to deepen dialogue on macroeconomic policy issues, as well as boost growth in mutual investment, including in transportation infrastructure, the development of mineral deposits, and the construction of budget housing within Russia. Russian President Vladimir Putin arrived in China on Tuesday for high-level talks with President of the People’s Republic of China Xi Jinping. A large package of documents, including bilateral, intergovernmental, inter-departmental and corporate agreements are expected to be signed during the two-day visit, aimed at cementing Russian-Chinese relations. The decision to switch to the national currencies, thus reducing dependence on the US dollar was first announced in 2010 by then-Russian Prime Minister Vladimir Putin and Chinese Premier Wen Jiabao. The announcement was followed by a deal struck by the central banks of the two countries that allowed bilateral trade in the ruble and renminbi, as well as in freely convertible currency.