attempt to sell usd/jpy
Hello traders!!
this last week has been full of statements by both American and Japanese central banks! the two banks are still diametrically opposed on their monetary policy decisions.
The fed, despite having skipped the month of June by a further rise of 0.25%, is expected to see another two further rises by the end of 2023! but Powell's words were the ones most followed given that the June jump was already largely discounted. It was interesting for us to learn that despite the dot plots predicting two more increases, Powell highlighted the fact that from now on it will be necessary for the fed to evaluate the outgoing data, in short, this June leap sounds like a small pause for reflection to avoid to be really too impulsive! I think many investors are now starting to believe more in a potential end to this cycle of rate hikes. In fact we have witnessed a largely negative weekly closing of the dxy (dollar index).
In Japan, on the other hand, the situation has remained unchanged as well as quite predictable, in fact the yen is suffering not only with the dollar but also with respect to all the other currencies, with a still aggressive carry trade! but we want to point out that the boj was also very attentive to fx fluctuations in the past and already on Friday night the Japanese economic minister issued a sort of warning Japanese Chief Cabinet Secretary Matsuno is out with some verbal intervention to rescue the Yen.
Key quotes
Important for FX to move stably reflecting economic fundamentals.
No comment on every day-to-day FX moves.
Closely watching FX moves.
Desirable for forex to move in stable manner.
No change in stance that we will take appropriate action.
Volatile forex moves not desirable.
also regarding the control of the interest rate curve in the past we have witnessed a change in a rather unpredictable way!
obviously looking at the present there is no doubt that with these elements the yen will hardly implement deep corrections! but nothing lasts forever and compared to last summer we could be close to this hypothetical change! meanwhile the trade charted by us could be feasible as the first short-term stall movement! as Powell says they will be given to guide us we'll see.
happy trading everyone!!
Quantum Management fzco
this last week has been full of statements by both American and Japanese central banks! the two banks are still diametrically opposed on their monetary policy decisions.
The fed, despite having skipped the month of June by a further rise of 0.25%, is expected to see another two further rises by the end of 2023! but Powell's words were the ones most followed given that the June jump was already largely discounted. It was interesting for us to learn that despite the dot plots predicting two more increases, Powell highlighted the fact that from now on it will be necessary for the fed to evaluate the outgoing data, in short, this June leap sounds like a small pause for reflection to avoid to be really too impulsive! I think many investors are now starting to believe more in a potential end to this cycle of rate hikes. In fact we have witnessed a largely negative weekly closing of the dxy (dollar index).
In Japan, on the other hand, the situation has remained unchanged as well as quite predictable, in fact the yen is suffering not only with the dollar but also with respect to all the other currencies, with a still aggressive carry trade! but we want to point out that the boj was also very attentive to fx fluctuations in the past and already on Friday night the Japanese economic minister issued a sort of warning Japanese Chief Cabinet Secretary Matsuno is out with some verbal intervention to rescue the Yen.
Key quotes
Important for FX to move stably reflecting economic fundamentals.
No comment on every day-to-day FX moves.
Closely watching FX moves.
Desirable for forex to move in stable manner.
No change in stance that we will take appropriate action.
Volatile forex moves not desirable.
also regarding the control of the interest rate curve in the past we have witnessed a change in a rather unpredictable way!
obviously looking at the present there is no doubt that with these elements the yen will hardly implement deep corrections! but nothing lasts forever and compared to last summer we could be close to this hypothetical change! meanwhile the trade charted by us could be feasible as the first short-term stall movement! as Powell says they will be given to guide us we'll see.
happy trading everyone!!
Quantum Management fzco
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