#yenbreaks155nearingyearhigh
The Japanese yen has rocketed to a seven month high, rising from about ¥160 to about ¥153.53 against the dollar in a week.
This is a much bigger move than just an exchange rate change.
The yen funds enormous carry trades cheap borrowing used to buy higher yielding stocks, bonds, currencies and crypto assets. Should the yen continue to appreciate, leveraged investors will have to unwind positions.
Expectations of faster Bank of Japan tightening, capital repatriation and Japan-US currency coordination are driving the shift.
The lesson: watch liquidity, not just prices.
When a big funding currency changes direction, risk assets world wide can feel the pressure
$SOPH
$IOTA
$AERO
The Japanese yen has rocketed to a seven month high, rising from about ¥160 to about ¥153.53 against the dollar in a week.
This is a much bigger move than just an exchange rate change.
The yen funds enormous carry trades cheap borrowing used to buy higher yielding stocks, bonds, currencies and crypto assets. Should the yen continue to appreciate, leveraged investors will have to unwind positions.
Expectations of faster Bank of Japan tightening, capital repatriation and Japan-US currency coordination are driving the shift.
The lesson: watch liquidity, not just prices.
When a big funding currency changes direction, risk assets world wide can feel the pressure
$SOPH
$IOTA
$AERO
