The AUD/JPY exchange rate, commonly used as a carry trade to take advantage of stark interest rate differentials between the two countries, is also a measure of investor risk. For that reason it may surprise some of you to learn the cost of the Australian Dollar in terms of the Japanese Yen is tightly correlated […]
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YEN
Japan’s new finance minister has indicated that he would like to see the yen depreciate ‘a bit more’ after falling 9% from it’s recent high. This is in contradiction to Japan’s recently retired finance minister, and likely means further depreciation for the Yen. I first recommended shorting the yen on 28 October in my piece […]
If you enjoyed what I wrote yesterday on Japan and the Yen, you will likely enjoy this intraday update from Zero Hedge: http://www.zerohedge.com/article/intraday-major-yen-divergence-parallel-derisking-process
-Strong domestic demand for Japanese government bonds has permitted Japan to keep interest rates at or near 0 despite significant increases to the government’s debt burden, with no significant currency depreciation, and almost no economic growth. But, this model may be coming to an end -An aging Japanese population will have several negative effects on […]
This is a very short global macro overview of today’s markets. I do not recommend any of the trades mentioned in this report, but hope they help reinforce your own view or help you generate some news ideas. Monetary policy around the globe remains easy, providing ample liquidity and room for credit growth. Additionally, fiscal […]