On Balance
Margin bal : $1,456.28
Positions : 1 lot nzd /usd + 1 lot usd/jpy
1 long nzd/usd position Put this on a few days ago, holding it for the interest rate differential.
I'm buying 1 lot of usd/jpy here, I figure the Japanese need a strong USD because we are their #1 consumer, if dollar gets weak against JPY then margins contract and so much for expansion. If Japanese investors don't put their money into the higher yielding US bonds, then BOJ will manipulate the currency into place. Maybe I will get lucky and usd/jpy will go down some more so I can average down.
Another theory I have is that gold precludes jpy moves, Japanese investors are big buyers of gold to protect them from the inflation they were promised. So naturally before BOJ starts an intervention they give their buddies a head start to position themselves for sudden currency devaluation by BOJ. This relationship will have to be studies further.
Positions : 1 lot nzd /usd + 1 lot usd/jpy
1 long nzd/usd position Put this on a few days ago, holding it for the interest rate differential.
I'm buying 1 lot of usd/jpy here, I figure the Japanese need a strong USD because we are their #1 consumer, if dollar gets weak against JPY then margins contract and so much for expansion. If Japanese investors don't put their money into the higher yielding US bonds, then BOJ will manipulate the currency into place. Maybe I will get lucky and usd/jpy will go down some more so I can average down.
Another theory I have is that gold precludes jpy moves, Japanese investors are big buyers of gold to protect them from the inflation they were promised. So naturally before BOJ starts an intervention they give their buddies a head start to position themselves for sudden currency devaluation by BOJ. This relationship will have to be studies further.
posted by Financial Planner at 5:07 PM
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