US sneezes and all the USD zombies catch pneumonia.
No JPY rally until (at least) they sync policy back up with the US on rates and asset purchases by their CB (btw same with the EZ).
Until then their firms will continue to try to make up for their shitty domestic business conditions by reducing the terms of their foreign business and continue to cause JPY weakness for their multinational depositories trying to finance the trade.
This stupidity has got to end sometime... even if by luck.
Japan's Q1 economic contraction worse than forecast #EconomicGrowth #GDP https://t.co/xjFFArlY1a pic.twitter.com/Zdm4BTDW0q— Sentifi SG Market (@Sentifi_SG) June 8, 2018
3 comments:
Alan says it is going to bounce back.
https://seekingalpha.com/article/4174602-reason-japans-gdp-shrank-first-time-2-years
US is getting back on track in the second quarter after suffering the effects of the big one time January 1 tax increase.... so I’d agree with Alan we should see Japan recover along with the US same with EZ .... JPY should accordingly bottom in here along with EUR...
Trump tariff stuff is a wildcard though looking forward...
For the big moves tho imo the “monetary policies “ have to get more in sync ... right now only US and U.K. a bit have their “monetary policies “ at all set correctly... EZ and Japan are going to continue to struggle...
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