Monday February 8, 2016 - 17:32:47 GMT
Global-View - www.global-view.com
Share This Story:
|
|
Email
OPINION: Yen Strength Revisited
John M. Bland, MBA, CTA
The reaction to the Bank of Japan decision to impose negative interest rates on sliver of deposits held at the central bank has worn off quickly as I had expected. Sometimes central banks make policy decisions geared to making headlines to shock the markets. They never last. I wrote: "I have been asking myself what has changed with the BOJ decision. Negative interest rates only apply to a narrow slice of bank deposits at the BOJ and and as for the additional QE, the yield on the 10-yr JGB has fallen from 0.22% to 0.10%. None of us are banks and those who were investing at 0.22% are unlikely to be impacted by a 0.10% yield. The BOJ decision was all about headlines. I think the impact of the headlines should wear off quickly."
Note in the chart above that the yield on the 10-yr JGB (Japanese Government Bond) has fallen today to a scant 0.38%. I expect these yields to turn negative at some point in the near future. JPY demand appears to be coming from capital repatriation due to falling global equities. Until these markets stabilize, the JPY will remain in demand much to the consternation of Japanese monetary officials.
Forex Trading News
Forex Research
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
here.
Forex News
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."
We are starting an affiliate program to market some of our products.
Veteran FX Trader, Max McKegg, forecasts all the Major currencies and the Australasians; providing Daily and Medium Term Trading forecasts to subscribers, who include large Banks the world over, as well as individual traders in more than 30 different countries.
