“Yen”-sanity: Markets Swoon At The Open After Japanese Currency Soars
On Friday, I outlined how Japan’s FX Catch-22 could end up weighing on US equities. Make no mistake, it’s an important dynamic to understand. Generally speaking, risk moves opposite the yen and there’s also carry unwind when the JPY moves higher. One hot topic in Japan recently has been Prime Minister Shinzo Abe’s plan to…
A Yen War Looms After Contentious Weekend In Japan
There’s probably no one in the world who wants the Fed to raise rates more than Japanese Finance Minister Taro Aso. Earlier this month, Aso threatened to intervene in the FX market if the yen continued to trade in a “disorderly, one-sided, speculative” manner. For those who haven’t followed the story, this is a big…