The yen rose across the board Tuesday, reversing early losses after news that China's raising its stamp tax on stock trading triggered some unwinding of carry trades. The Xinhua News Agency reported that China will triple its stamp tax on equity trading to 0.3% to 0.1%, effective Wednesday. "With the Shanghai index hitting another record high last night, the latest move by the government is seen as a bid to clamp down on the overheated market," said Kathy Lien, chief strategist at DailyFX.com. "The hope is that the stamp tax will reduce the amount of trading, but with a tax of 3 in a thousand, the increase may only have a limited impact on the Chinese market in the long term." The euro was last down 0.1% at 163.49 yen, after earlier touching a record high at 164.29 yen. The dollar was down 0.1% at 121.52 yen
very good call, I was short Yuppy from 164.12 off of a setup i normally take. was wondering what the news was, since I rarely look at it.
I'm shorting the near-month YEN future this session, on belief that gradual fall in price of JGBs make YEN less attractive in the near term (3 mos or so). This set up isn't about fundamentals, but about what will return best in the short run (the expectation). JGBs aren't it. Shorting between .8250 up to about .8270, up to four total, with stop for all 70 ticks from avg in. Looking for .8120.
Can you smell it? Diaper change for rickety YEN longs, wondering why cool data tonight hasn't sent the cash rocketing below 121.
Russki Standard? I have a platnium bottle in the basement fridge. Maybe I should tap into it this weekend.
As a result of massive research, Job-like patience, and the deft timing a professional such as myself can accomplish, I created a short YEN position about 8 ticks better than the mid point of this session's range, which is about where the price looks to close. I would like equity in the trade of about one-third of my target going into USA's payrolls -- .8210 would work -- because, from that level, a good jobs number would give me a fifty-fifty change of reaching my target. At a 2 to 1 reward to risk, that would be a good trade.
The carry trade ain't going anywhere till the Asian CBs stop creating global liquidity through reserve accumulation...of course there will be minor shakeouts, but until something material happens to change the dynamic ..(a real chinese reval for example) then the game will continue...there is just too much money out there to put to work
Yep and the ballon just gets bigger. The global economy can't be run with centrally planned east economies and everyone else operating on a liberal set of market rules.