Hey Traders
So, I have been asked by many of my clients to explain the relationship between interest-rates and inflation and how to translate that information into their analysis.
For this reason I put this little mini lesson together to explain:
- The core role of the central bank
- Reason and objectives for interest-rates and inflation
- How you can use...
Has anybody ever told you to be careful what you wish for because you might get it? Well, the Bank of Japan appears to be in one of those situations today.
Japan spent three decades oscillating into and out of deflation. As such, when inflation started to rise in 2022, the BOJ was initially thrilled. Finally deflation was coming to an end, and inflation was...
Japan's PM Kishida claims, he cannot tolerate excessive FX moves by speculation. But given the circumstances of the message, I understand 'speculation' as an excess of supply and lack of demand. Anyway, I will not argue with the correctness of his wording, political or otherwise, and will just compare the similarities.
► The interventions started after breaking...
Yesterday, after more than 10 years, the Bank of Japan intervened in the market.
UsdJpy pair was very volatile and has a 550 pips daily range from top to bottom. However, thinking of previous interventions, yesterday's volatility represented around 2.5% if we take into consideration the daily close when in the past we had 5% moves...
But, what do we know from...
Apologies for the ominous chart title on a Monday morning, but having spent the weekend watching a few documentaries about the Japan earthquake, I was intrigued on how the currency markets react to black swan events.
The Story (Japan Earthquake - Yen)
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The Tohoku earthquake hits Japan on...
