The dollar rose against the yen on Friday after a government report showed U.S. employers cut fewer jobs than expected (36,000 against an anticipated figure of 70,000) last month which prompted optimism about an economic recovery being under way and the Dollar fell against the high yielding currencies ...

The dollar rose against the yen on Friday after a government report showed U.S. employers cut fewer jobs than expected (36,000 against an anticipated figure of 70,000) last month which prompted optimism about an economic recovery being under way. The Japanese currency also dropped versus the Euro and higher-yielding currencies such as the Australian dollar, as the data encouraged investors to buy risky assets funded by cheaply borrowed yen. Our view is that we are far from out of the woods in terms of a global economic recovery but short covering rallies in the British Pound and Euro were on the cards...

In our recent trading, we have generally been quite pleased with our performance – we have made great gains in the Euro and solid gains in the Yen Aussie and Canada Dollar but in the Pound, while we have made money with some quick swing trades to the upside we called the rally to early and have seen, a great down trend unfold which we have missed but this trend has now run to far too fast and the news that has generated a poll on the election ( which are notoriously inaccurate ) is overdone..

The view that the global economy is on the road to recovery based on sand. We have maintained this view since the start of the year and have positioned ourselves accordingly. Since the start of 2010 we have been looking for $Dollar strength, against the “hot money” currencies of Euro, Canada and Aussie Dollar and we are short, we have seen some counter trend action today but we see these currencies, going lower longer term and expect this rally to fade into resistance.

The view that the global economy is on the road to a quick recovery, is based on sand and we have maintained this view since the start of the year and have positioned ourselves accordingly. Since the start of 2010 we have been looking for $Dollar strength against the “hot money” currencies of Euro, Canada and Aussie Dollar and they have fallen nicely and we expect these trends to continue.

As we have said for the last few weeks – the optimism over the global economy is based on sand and the two currencies that will gain will be the Dollar and Yen. Both currencies look to be set to remain firm longer term but in PM trading they are off their highs...

As we have said for the last few weeks – the optimism over the global economy is based on sand and the two currencies that will gain will be the Dollar and Yen and we are seeing this in AM trading.