Tag Archive: Abenomics

Abenomics: A USD/JPY Trade the Smart Money Banks on

2013-06-08

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2013-06-08

Hedge funds worldwide have been counting on a rise and subsequent fall in USDJPY, and conditions remain intact for that to happen, though not to the extremes that many once expected.

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Abenomics: Japanese Economy Would Have Recovered Even Without it

2013-05-25

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2013-05-25

Response to Prof. Nick Rowe, Carleton University, Canada and Lars Christensen, the leading “Market Monetarist“.   Nick Rowe: Is the Bank of Japan trying to push down bond yields? Well, yes and no. Yes, it is fighting a battle to push down bond yields, but that battle is part of a wider war for economic recovery. And …

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Richard Koo’s newest paper: About the Ineffectiveness of Monetary Expansion



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Why the Yen Is Now Fairly Valued, USD back as Preferred Funding Currency

2013-03-15

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2013-03-15

Japan
Producer prices and “real mean reversion” for currencies show that the yen is currently fairly valued. Many momentum factors could, however, speak for some further weakening, while seasonality favours an appreciation. For us, the US dollar is back as the preferred funding currency. The real mean reversion for currencies Some economists, like Goldman’s O’Neill, in the case …

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When Will Hedge Funds and FX Traders Close their Short Yen Positions?

2013-03-05

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2013-03-05

Hedge Funds have lost their power. This year has shown that their only remaining possibility to gain easy money  is a concerted action with some of their friends manipulating currency markets, calling it “currency wars” and creating an unholy alliance with the dovish prime minister Abe. Some of the biggest U.S. hedge-fund investors have made …

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Epic Shift in Monetary Policy: Japan goes SNB, Nuclear Option

2013-01-14

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2013-01-14

According to Bloomberg, at least prime minister Abe is taking the nuclear option and is following the SNB in buying foreign assets. This is a huge change in global monetary policy.

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