It works till it doesn't
simple economics: if you want to fight unemployment, you need to be more competitive! how? lowering the prices of exports, the only way to do it is...weaking the currency. So ... don't know how can be people shorting
On related note. Does anybody remember when the UJ was 120 and the EJ was 150. Was it help for the Japanese economy? Not
. They were bouncing between the recession and the 0.5% grow. Fortunately politicians have short term memory only - #32,723
- Jan 10, 2013 7:04pm Jan 10, 2013 7:04pm
First of all I am in a long...
On related note. Does anybody remember when the UJ was 120 and the EJ was 150. Was it help for the Japanese economy? Not
It works till it doesn't
First of all I am in a long...
On related note. Does anybody remember when the UJ was 120 and the EJ was 150. Was it help for the Japanese economy? Not
The probability of Abe's plan working is not great at all, but truthfully as a trader that really shouldn't matter to us, to be honest it's better for us because the way down will be just as much run as the run up has been.
that's what they said about Hildebrand's plan (then his wife screwed things up...); but, the idea of a price floor worked. look at .eurchf --- they said 1.2 and no further! promising to do whatever was necessary. prior to that they had tried episodic interventions which never worked --- just like the BOJ
what if Japan takes the same course of action? suppose they let the price overshoot to ~93, and then when it starts falling back to 90 (or 91/2) they announce to the world: 90 (or 91/2) AND NO FURTHER!!! WE WILL BUY UNLIMITED AMOUNTS OF OTHER ASSETS TO DEFEND THIS PRICE.
it has every chance of working... be careful my friend
It's not a big deal either way, I don't hold trades for years besides they would announce the floor then I wouldn't go near the pair, not really a big concern of mine. I haven't traded the Eur/chf in over a year now it's not affecting by bottom line at all.
kinda agree. .eurchf has been drifting away from 1.2 since august and may become tradeable again this year if it drifts far enough. if boj did same thing, .uj would probably be untradeable for year or more
hate to see that.
that's what they said about Hildebrand's plan (then his wife screwed things up...); but, the idea of a price floor worked. look at .eurchf --- they said 1.2 and no further! promising to do whatever was necessary. prior to that they had tried episodic interventions which never worked --- just like the BOJ
what if Japan takes the same course of action? suppose they let the price overshoot to ~93, and then when it starts falling back to 90 (or 91/2) they announce to the world: 90 (or 91/2) AND NO FURTHER!!! WE WILL BUY UNLIMITED AMOUNTS OF OTHER...
.But please note, Hildebrand's plan worked because they really defended the Swiss Franc. The foreign currency assets in the SNB balance sheets was increased by 200 billion CHF in last year.
http://www.snb.ch/ext/stats/balsnb/p...se_der_SNB.pdf