USD/JPY spiked after Abe’s landslide victory on July 11 triggered speculations the government would announce a fiscal stimulus package to weaken Yen (support economy, combat deflation). Post Brexit drop in USD/JPY also triggered speculation the Bank of Japan (BOJ) would cut rates further into negative territory/expand QE.
The ‘reflation’ trade as called by TradeSignaller analyst on our Finance show - youtube.com/watch?v=zzIuBr7-IrI pushed up US stocks to record highs.
Reflation trade – borrow in Yen and invest in US stocks – has been noted on numerous occasions in history. Moreover, the rise in US stocks since late 2012 has been fueled by Yen drop.
We can notice on the chart above – the correlation coefficient between Dow and USD/JPY strengthened post July 11.
This makes us wonder if the drop in the USD/JPY seen today could pull Dow Jones lower with itself. Also note that USD/JPY could fall sharply if BOJ/Japanese government falls short of market expectations. In such a case, Dow Jones faces risk of a sell-off.
The ‘reflation’ trade as called by TradeSignaller analyst on our Finance show - youtube.com/watch?v=zzIuBr7-IrI pushed up US stocks to record highs.
Reflation trade – borrow in Yen and invest in US stocks – has been noted on numerous occasions in history. Moreover, the rise in US stocks since late 2012 has been fueled by Yen drop.
We can notice on the chart above – the correlation coefficient between Dow and USD/JPY strengthened post July 11.
This makes us wonder if the drop in the USD/JPY seen today could pull Dow Jones lower with itself. Also note that USD/JPY could fall sharply if BOJ/Japanese government falls short of market expectations. In such a case, Dow Jones faces risk of a sell-off.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.
면책사항
해당 정보와 게시물은 금융, 투자, 트레이딩 또는 기타 유형의 조언이나 권장 사항으로 간주되지 않으며, 트레이딩뷰에서 제공하거나 보증하는 것이 아닙니다. 자세한 내용은 이용 약관을 참조하세요.