![]() ![]() ![]() And this inflation isn’t of the ‘healthy’ variety. This is one of the reasons that negative rate-regimes have been avoided for so long: It could be potentially playing with fire (the inflationary kind). This could lead to significant currency weakness as investors flock to anywhere but your currency, and all of those goods that you have to import all of the sudden begin to get very, very expensive. There’s no gold or silver backing the currency, and while I’m not saying that’s a ‘good’ thing since pretty much all of those regimes have failed, faith is of utter importance because, should trust wane investors may just sell out of your currency at an uncontrollable pace. After all, in a fiat-based monetary system, all that we really have is faith. ![]() Track changes in positioning and sentiment in real-time to filter trends and opportunistic trade ideas.Ĭonfidence is a pretty important thing in a financial system. USD/JPY – Don’t Forget About the 26-Year Trendline. USD/JPY: Shock and Some Awe (critical resistance zone in 121.50-122 area). The Yen put in its largest annual loss after the Bank of Japan made a surprise move to negative rates. BoJ Makes Stealth Move to Negative Rates, Pressure on to China ![]()
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