Wednesday, June 15, 2016

BOJ + Fed Decision: Monkey Hammer China

The Fed's soft dollar decision today combined with the just announced Japan "strong Yen" position, further implodes the China/Japan carry trade, and will lead to accelerated Yen buying...

China FX Reserves (Red) with Yen / Yuan exchange rate...

The U.S. Low Volatility Implosion Fund with Yen / Yuan

New multi-year low for USDJPY 

Fast forward to 1 picture Chinese carry traders caught between dollar and Yen: