USD/JPY to the Moon
- Thread starter schizo
- Start date
With CPI on the rise, will BOJ up the rates?
Inflation in Japan's capital accelerates, keeps BOJ rate hike prospects alive
TOKYO (Reuters) - Core inflation in Japan's capital accelerated in June on rising fuel bills and the boost to import costs from a weak yen, data showed on Friday, keeping alive expectations for a near-term interest rate hike by the central bank.
Inflation in Japan's capital accelerates, keeps BOJ rate hike prospects alive
TOKYO (Reuters) - Core inflation in Japan's capital accelerated in June on rising fuel bills and the boost to import costs from a weak yen, data showed on Friday, keeping alive expectations for a near-term interest rate hike by the central bank.
If the BOJ intervened and the Yen kept going lower, that would be a catastrophe. I wonder if that would negatively effect the Nikkei? I am short Yen & long the DXJ but I wonder if there is a sell off coming for equities.
If the USD dollar fell 7% in 3 months I wonder if the S&P would fall.
If the USD dollar fell 7% in 3 months I wonder if the S&P would fall.
I'm not your fundamental guy, but if BOJ were to increase the interest rate, the yen would (or should) rise and the dollar would fall. And that should theoretically drive the Nikkei higher. BTW USD/JPY and SPX usually move in tandem.
That is craaaazy!
Opposite. If a country's currency drops, index (usually) rises.
Topix Weekly covering past 2 years:-
(BLOOMBERG)
Yen risks
Yen traders’ sights will be trained on the PCE data with the Japanese currency breaking through levels against the dollar not seen since 1986. The persistent strength in the greenback has raised wagers of Japan intervening in the market. Meanwhile, the country’s Topix stock index touched the highest level since 1990, boosted by improving shareholder returns and with the weak yen helping exporters.
Yen risks
Yen traders’ sights will be trained on the PCE data with the Japanese currency breaking through levels against the dollar not seen since 1986. The persistent strength in the greenback has raised wagers of Japan intervening in the market. Meanwhile, the country’s Topix stock index touched the highest level since 1990, boosted by improving shareholder returns and with the weak yen helping exporters.
The meltdown continues
https://www.zerohedge.com/markets/j...-yen-disintegrates-another-intervention-looms
https://www.zerohedge.com/markets/j...-yen-disintegrates-another-intervention-looms
I think the reason Nikkei went up is more to do with global inflation than currency depreciation. If you believe "a country's currency drops, index (usually) rises", why did USD and SPX both went up in the last 2 years? SPX should have dropped. We're just in a period of anomaly due to COVID. Just my useless 2-cents.
Anyway, USD/JPY ain't going any higher. And if there's BOJ intervention, I hope you know what to do.
