Just got in and decided to look at the real-time quotes. As I have said many times before, there are fundamentals, there is what should logically occur as a result of the news, and then there is what the market does. This is another of THOSE cases.
Believe it or not, the yen crosses have mainly dropped, and I do not mean a little. Some of them have dropped a lot. Poundyen closed friday at 237.27. The current quote is 235.27, a 200 pip drop. EJ dropped from 158.21 to 156.84, a drop of about 140 pips. However UJ only dropped from 121.66 to 121.55. Fiber dropped from 1.3004 to 1.2924, a drop of 80 pips. Cable is with 5 pips of where it closed.
I would not panic just yet. The prices this weekend have been flipping around all over the board, This is just for anyone's edification because I would not let it bother me. I have no reason, with all the price changes which have occurred this weekend, to believe that these numbers will remain for very long where they are.
With the weak language about the yen, like everyone else I had been expecting the carry trade pairs to shoot up, not drop a huge amount. I can find no fundamental, logical or other explanation why this is happening. But then who ever said that the market was logical or made sense. It is enough to make a Vulcan despair.
Live long and prosper, all.
Believe it or not, the yen crosses have mainly dropped, and I do not mean a little. Some of them have dropped a lot. Poundyen closed friday at 237.27. The current quote is 235.27, a 200 pip drop. EJ dropped from 158.21 to 156.84, a drop of about 140 pips. However UJ only dropped from 121.66 to 121.55. Fiber dropped from 1.3004 to 1.2924, a drop of 80 pips. Cable is with 5 pips of where it closed.
I would not panic just yet. The prices this weekend have been flipping around all over the board, This is just for anyone's edification because I would not let it bother me. I have no reason, with all the price changes which have occurred this weekend, to believe that these numbers will remain for very long where they are.
With the weak language about the yen, like everyone else I had been expecting the carry trade pairs to shoot up, not drop a huge amount. I can find no fundamental, logical or other explanation why this is happening. But then who ever said that the market was logical or made sense. It is enough to make a Vulcan despair.
Live long and prosper, all.