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The Fed and a Lower GDP Strengthen the Yen
The FED’s interest rate hike and worse GDP data definitely spiced up trading during the second half of the week. Surprisingly, the biggest moves can actually be seen on the yen, which strengthened dramatically. You could argue that this is because of a risk-off mode and a flee towards safe haven assets. Fair enough, but at the same time, stocks and emerging markets’ currencies climb higher, so something here doesn’t add up. The rise on the yen is really significant and very interesting from a technical point of view. As an example, we’ll use the GBPJPY, where we do have a proper sell signal. This is quite ... (full story)