Week in FX Asia-Yen, Yen and Yen Again

How big is that Yen bet? Shortening the Yen and waiting sounds too easy. Something so easy can usually spell danger. The increase in Yen short IMM positions would suggest that we are beginning to see the early days of the Yen carry trade. Most of the Japanese political parties are in a race to come up with new and exotic monetary and fiscal policies to artificially weaker their own currency to competitive levels. Who say’s we are not in a currency war? Coupled with the country ‘s massive debt/GDP and a stagnant economy makes natural sense to go with this structural shift in the Yen flows. Be weary, a failure in US fiscal cliff talks could be a large dampener on the negative Yen trade, sending the dollar back towards 80.00 again before year end.

• Added pressures on Singapore Firms to increase wages in face of high inflation
• Aussie GDP lower than expected – Tomorrow’s Employment Data in focus: Charts
• China Banks Could Slow Down in 2013
• Trading CNY in London? Calls for BoE to support Yuan Trade.
• RBA Cuts Rate to 3.00% – Reaction and Charts
• Yen Weakens on Bets BOJ Will Boost Monetary Easing
• Yuan Bond Yield Beating Australia
• India Set to Beat US Into 2nd Place in Manufacturing
• China policies to stay “accomodative” to strengthen domestic demand – Asian stocks higher
• Aggressive BOJ can end Japan’s deflation woes – Advisor Hamada
• Japan Election Kicks into Gear
• The Yuan Could Take Over
• RBA Cuts Key Rate to 3% – an Equal 50 Year Low

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.