The Bank of Japan <BoJ> has been under clandestine pressure from Trump administration over the past year, to start winding down its ultra easy money policy, as Japan’s economy has posted solid growth for eight straight quarters, its longest run in 28 years. Hiroshi Watanabe, Japan’s former top currency diplomat, who retains close contact with international financial diplomats, said the BoJ is struggling to justify its policy of capping 10-year bond yields at zero percent with the economy in good shape and the job market near full employment.
Apr 03, 2018
What’s going on with the Sinking US$? the Answer is Simple;
Well into 2018, a few FX traders are still struggling to understand the underlying bearish trend of the US$. How can it be that US yields are rising sharply, yet the US$ is so weak at the same time? The answer is simple: the US$ is not going down despite higher yields, but because of them. Higher yields mean lower bond prices and US bonds are lower because foreign based investors…
“Bear Raids” have been a part of the US-stock market’s folklore for more than a decade. Throughout history, investors have blamed short sellers for some of the worst crashes in the world’s financial markets. Jesse Livermore was said to have pocketed $100-million in profits from shorting the stock market during the Crash of 1929. Before his death, Livermore wrote a book titled, “How to Trade in Stocks,” in which he described the dynamic of a “Bear Raid” as follows;
“The…
Timeline – the Euro’s one year Rally to $1.2500
One year ago, on January 15th, 2017 – the US’s president elect, Donald Trump was in a hurry to fire the first shot in a currency war with Germany, which had just accumulated a $90-billion trade surplus with the US, in the previous 12-months. Trump threatened Bayerische Motoren Werke with a 35% import tax for foreign-built BMW cars sold in the US. He advised BMW to scrap plans to open a new plant in San…
