Asset prices have slumped in the days following the US/Israeli offensive against Iran. It might look pretty bad but it might have been a whole lot worse if the rise in...
New pressures on the Federal Reserve (FED), in the form of a subpoena from the US Department of Justice serves to highlight the crosscurrents impacting the US dollar.
The Bank of Japan (BoJ) is expected to lift the policy rate by 25-bps at Friday’s meeting. Many of the rate hikes in the past have seemingly caused substantial rallies...
Once again, Japanese policymakers are becoming frustrated by the weakness in the yen. Intervention could be just around the corner but, if past experience is anything to...
Economic recovery and an inflation rate close to target should give reason for the Bank of Japan (BoJ) to lift policy rates further. However, the BoJ would need to...
The BoJ almost certainly won’t hike rates again this week, but this need not necessarily rule out another painful carry-trade unwind.
It seems that there are two opposing views about the yen-funded carry trade that underwent such huge turmoil earlier this month.
If the yen-funded carry trade stays out of fashion for a while, what other currencies could take its place?
Many financial asset prices have recovered after the battering late last week and early this week. Will the slump in things like stocks and dollar/yen continue to fade...
Euro/US dollar has hardly left the extremely narrow 1.05-1.10 range since early 2023.
Turmoil in risky assets such as equities might have been sparked by concerns about the US economy but, in reality, we think that the rapid unwinding of yen-funded trades...
There’s still some very low funding rates out there (the yen), while prior monetary policy tightening elsewhere means that policy rates are high and interest rate...
The FX carry trade has performed well in the first two months of the year helped, undoubtedly, by the persistence of low rates in one of the main funding currencies –...
The yen is the worst performing G10 currency so far this year. But, just recently the yen has rallied back. Will this be the start of a longer-term recovery?.
There are a couple of currencies that are not trading particularly well right now. Most of you probably think that we are going to say the euro, as it has slipped since...
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