Suppose the Department of Defense had a mission – to take out the government of a rogue nation. For the purposes of this discussion we will call this nation Deflationstan. However, rather than go in with the full forces of the Army, Navy, Air Force and Marines, the...
Reading the statement from a cab in London, it appears 3 big changes. First, the inflation paragraph is much more dovish with the addition of a statement on inflation being below the level consistent with the mandate on price stability. Second, the final paragraph...
The fallout from Japanese intervention continues to be the primary driver of almost all price action. First of all positioning long YEN and CHF in much of the CTA world has created a lot of wound licking. I suspect speculative positions that were largely in “risk off”...
The geopolitical fallout from the Japanese intervention has yet to work itself through market psyche yet. The Japanese unilateral move to defend the YEN represents is a HUGE sea change for global capital markets. First and foremost the Chinese foray into YEN purchases...
There will be beaucoup YEN floating around in the system looking for a home!! Not only did the MoF sell YEN (finally), but thankfully the BOJ has coordinated the action to leave the YEN in the system and affect a monetary policy ease. This unsterilized intervention is...
There will be beaucoup YEN floating around in the system looking for a home!! Not only did the MoF sell YEN (finally), but thankfully the BOJ has coordinated the action to leave the YEN in the system and affect a monetary policy ease. This unsterilized intervention is NOT typical - cooperation by the fiscal and […]
