Japan former top currency diplomat warns of intervention if the yen falls further

Discussion in 'Forex' started by Nighthawk, Sep 20, 2023.

  1. Some remarks by Takehiko Nakao, who served as Japan's top currency diplomat from August 2011 to March 2013

    • It is fully possible that Tokyo will conduct intervention in case the yen weakens further
    • Amid a weakening yen, BOJ may have no choice but to normalise monetary policy
    • That includes exiting negative rates and ending yield curve control
    He also says that markets shouldn't take things lightly and think that a threat of intervention is "not imminent". As for his view on the BOJ stance, it is one that I am sympathetic towards as it is the only thing that can really turn things around for the Japanese yen.

    https://www.forexlive.com/news/japa...tervention-if-the-yen-falls-further-20230920/

    Must be a funny coincidence that these comments come at the eve of FED maybe ending the interest rate hike cycle and the crowded Treasury bond trade by hedgies.... :D:sneaky:

    Fed economists sound alarm on hedge funds gaming US Treasuries


    https://www.reuters.com/markets/us/...-hedge-funds-gaming-us-treasuries-2023-09-13/

    Fasten your seat belts - Sep and Oct will be nasty volatile !:cool:
     
  2. maxinger

    maxinger

    [​IMG]

    Stop looking for problems.
    Look for opportunities!!!!!


    Fasten your seat belts - Sep and Oct will be nasty volatile
    --->
    Open your eyes big big - Sep and Oct will be great for trading
     
    sridhga likes this.
  3. zdreg

    zdreg

    Every problem is an opportunity.
     
  4. Overnight

    Overnight

    Indeed. I figure right about now is the time the ET-ers who have experience in fixed-income should be screaming "Long Treasury futures now, now, now!", because pausing interest rates combined with record hedged shorts should lead to a squeeze north in price, no?

    How come we haven't heard that clarion call yet?
     
  5. zdreg

    zdreg

    Watch cnbc the Final Trade.
     
    Last edited: Sep 20, 2023
  6. It's easy to say that but can you describe a testable strategy that will actually make money?
     
  7. zdreg

    zdreg

    Do you understand the ridiculousness of your question?
     
  8. Overnight

    Overnight

    Did they say they having a segment on that tonight? (I missed the morning show today.) Or do they just talk about Ts in general each night?
     
  9. TheDawn

    TheDawn

    Why would they intervene to prop the Yen higher when Japan is a net exporter? That does not make sense.
     
  10. maxinger

    maxinger

    Trading is very hard. Sorry no simple answer to your Q.

    It will be even much much harder for the OP as he has a rather negative
    frame of mind.
     
    #10     Sep 20, 2023