Gavekal Capital: The Yen Carry Trade Rules The Day (Again) as USD Gains and Gold Tanks

Thursday, January 30, 2014

The JPY/USD cross is once again going tick for tick with S&P 500 futures as investor appetite for risk did a 180 overnight:

With the euro selling down to 1.355 vs the USD, the USD is the big winner on the day:

As gold struggles:

About Gavekal Capital

Gavekal Capital is a US registered investment advisory firm that manages the Gavekal Knowledge Leaders Strategy. Knowledge Leaders are a group of the world’s leading innovators with deep reservoirs of intangible capital. These companies often possess competitive advantages such as strong brand, proprietary knowledge or a unique distribution mechanism. Knowledge Leaders are largely service-based and advanced manufacturing businesses, often operating globally. Gavekal Capital seeks to identify the world’s leading knowledge companies through a proprietary process that analyzes corporate knowledge investments.
We offer the Gavekal Knowledge Leaders Strategy in multiple products for global investors. For more information about our product offerings please visit http://www.gavekalcapital.com.
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