Its a strange world.

The U.S. core personal consumption expenditure index, the inflation gauge most closely watched by Federal Reserve policymakers, was at 0.1 percent last month against market expectations of a rise of 0.2 percent. Still not bad though. But it indeed is a strange world. The Euro strengthened a bit further while the Yen fell to nearly 119.50. But then semblence reappeared and it is back in the 118's as of now. Traders say the yen was inversely tracking the fortunes of stock prices, which fell after mortgage lender American Home Mortgage Investment Corp. said it could not fund home loans and may have to liquidate assets.

Expect another round of shake off what with the Yen firm on its wicket near the 118.50 mark today after a rocking yesterday. There should be little cause of concern for those running short on the yen but as all wise men would tell you in these times of the Great Carry Trade Caravan, keep your ears and eyes open. Not that I am trying to frighten you. No, I dont believe the Yen would make a further dent on the 119.00 mark with any conviction, if any. It should be playing more in the 118.20-118.60 range for most parts while Japan is on work. Though expect a few fireworks by evening (Yen weakening I mean) when Japan also will be celebrating the Worlds biggest firework display at Tondabayashi, Osaka prefecture. I am going there to witness around 100,000 plus fireworks being displayed in just under One hour!!!