Why are there Big Drops of GJ, GU, EU, EJ in July 2007? | Forex Factory

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Why are there Big Drops of GJ, GU, EU, EJ in July 2007?

  • #1
  • First Post: Edited 10:52pm Apr 5, 2011 10:42pm | Edited 10:52pm
Hello, anyone knows that why GJ, GU, EU, EJ big drops in July 2007 until Jan 2009?

By the way, where can get the 1970s charts for these 4 pairs of currency?
  • #2
  • Apr 5, 2011 10:55pm Apr 5, 2011 10:55pm
i thought that forex calender got the data, but in term of general, sure it helps a little.
  • #3
  • Apr 6, 2011 12:00am Apr 6, 2011 12:00am
Quoting klhh
Hello, anyone knows that why GJ, GU, EU, EJ big drops in July 2007 until Jan 2009?

By the way, where can get the 1970s charts for these 4 pairs of currency?
You have heard of the GFC right? Global credit crisis, global financial crisis, credit crunch, anything sound familiar?

US$ is a safe haven currency and the Yen was the carry trade currency of choice which correlated it closely with equity market performance.
  • #4
  • Apr 6, 2011 12:03am Apr 6, 2011 12:03am
Quoting lachie74
You have heard of the GFC right? Global credit crisis, global financial crisis, credit crunch, anything sound familiar?

US$ is a safe haven currency and the Yen was the carry trade currency of choice which correlated it closely with equity market performance.
I ever heard, but not that familiar, could you please explain in details?what causes the GFC?
  • #5
  • Sep 16, 2011 3:34am Sep 16, 2011 3:34am
Hello, anyone knows that why GJ, GU, EU, EJ big drops in July 2007 until Jan 2009? - it was risk aversion time....at extreme level... eu gu ec gc ej gj..... the perfect condition gold up .. oil down - ideally .... and uc / ec / gc ideally down..
stock , commodity , bond , forex
  • #6
  • Sep 16, 2011 3:49am Sep 16, 2011 3:49am
The carry trade had been going strong for a long time and PoundYen was paying very high interest.

In July 2007, Japan raised its interest rate just a little bit, but it began an unwinding in the carry trade. PoundYen had topped at above 251.... within a couple of days, it started a dramatic downtrend.
  • #7
  • Sep 16, 2011 4:11am Sep 16, 2011 4:11am
At the time the saying went - that though its trouble all over, the US is in a better position than the rest of the world. So though G & E were to be appreciating bcoz of the sub-prime and credit crisis taking place in the US, because of global economies falling into recession the US was seen to be in better economic long-term health relatively.

Thanks.
  • #8
  • Last Post: Sep 16, 2011 5:08am Sep 16, 2011 5:08am
Quoting klhh

By the way, where can get the 1970s charts for these 4 pairs of currency?

try netdania.com you have monthly data from 70s

http://netdania.com/Products/live-st...Chart.aspx?m=c
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