Forum > View Topic
by Ashraf Laidi
Posted: Feb 22, 2010 5:00
Comments: 1558
Posted: Feb 22, 2010 5:00
Comments: 1558
Forum Topic:
JPY
Discuss JPY
The yuan has risen less than 1 percent against the dollar since mid-June when Beijing said it would allow it to trade more freely after keeping it virtually unchanged for 18 months.
So here it is:
1) China buys JGBs
2) JPN answers back w/ intervention to weaken yen & discourage CHina buying
3) PBOC tightens policy & drives yen back up.
Art of War my friends
Ashraf
I am pretty confident it won't work. Especially the Boj tends at the end of Sept always to inject ample supply. The only winner so far is US treasury and with respect ot FOMC I think the timing of intervention was wrong.
Goldman analyst says the BOJ has Y35 trillion of intervention capacity.
That is about USD 400 bln . Geithner needs not worry about UST auctions meeting lukewarm demand, rather the treasury doesn't have enough treasuries to sell...