Yen falling and fundamentals regarding earthquake - Traders Hideout | futures io social day trading
futures io futures trading

Yen falling and fundamentals regarding earthquake
Updated: Views / Replies:2,852 / 3
Created: by josh Attachments:0

Welcome to futures io.

(If you already have an account, login at the top of the page)

futures io is the largest futures trading community on the planet, with over 100,000 members. At futures io, our goal has always been and always will be to create a friendly, positive, forward-thinking community where members can openly share and discuss everything the world of trading has to offer. The community is one of the friendliest you will find on any subject, with members going out of their way to help others. Some of the primary differences between futures io and other trading sites revolve around the standards of our community. Those standards include a code of conduct for our members, as well as extremely high standards that govern which partners we do business with, and which products or services we recommend to our members.

At futures io, our focus is on quality education. No hype, gimmicks, or secret sauce. The truth is: trading is hard. To succeed, you need to surround yourself with the right support system, educational content, and trading mentors Ė all of which you can find on futures io, utilizing our social trading environment.

With futures io, you can find honest trading reviews on brokers, trading rooms, indicator packages, trading strategies, and much more. Our trading review process is highly moderated to ensure that only genuine users are allowed, so you donít need to worry about fake reviews.

We are fundamentally different than most other trading sites:
  • We are here to help. Just let us know what you need.
  • We work extremely hard to keep things positive in our community.
  • We do not tolerate rude behavior, trolling, or vendors advertising in posts.
  • We firmly believe in and encourage sharing. The holy grail is within you, we can help you find it.
  • We expect our members to participate and become a part of the community. Help yourself by helping others.

You'll need to register in order to view the content of the threads and start contributing to our community.  It's free and simple.

-- Big Mike, Site Administrator

Thread Tools Search this Thread

Yen falling and fundamentals regarding earthquake

  #1 (permalink)
Georgia, US
Trading Experience: None
Platform: Various
Favorite Futures: Various
josh's Avatar
Posts: 4,965 since Jan 2011
Thanks: 5,262 given, 11,740 received

Yen falling and fundamentals regarding earthquake

My fundamental understanding of markets is often quite non-existent-- according to this article, Japan and the G7 central banks are buying dollars to weaken the yen, with the yen being strong over the last week. My question-- why is the Yen stronger if Japan was just hit by a huge catastrophe?

Central banks move to weaken yen and calm markets | Reuters

Nevermind, just saw there was a page 2 and read this:

The yen's surge this week was driven by speculation that Japanese firms would repatriate some of their huge foreign assets to help meet insurance claims and pay for reconstruction.

That added to a bullish run for the currency in past years, driven by its status as a "safe haven" since the 2008 financial crisis and investors' use of it as a very low-interest funding currency for more risky investments.

I would still love to hear your thoughts.

Another article: (google is my friend duh)

Reply With Quote
  #2 (permalink)
Quick Summary
Quick Summary Post

Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.

  #3 (permalink)
Market Wizard
Berlin, Europe
Trading Experience: Advanced
Platform: NinjaTrader, MultiCharts
Broker/Data: Interactive Brokers
Favorite Futures: Keyboard
Fat Tails's Avatar
Posts: 9,773 since Mar 2010
Thanks: 4,234 given, 26,241 received

I think, there are two major points to consider

Japanese Overseas Investments

The Japanese have been running export surpluses over the last decades. The $$ from the surplus have been invested overseas. The US Treasury Deparment issues monthly figures on foreign holders of treasury securities, which can be found here:

As you can see, Japan is the second foreign investor in US government securities and held around $ 886 billion in the end of January 2011. Expectations are that Japanese will repatriate part of their holdings and purchase Japanese yen to cope with the current situation. The repatriation will create an increased demand for Japanese Yen. This has been anticipated by speculators.

The Carry Trade

This involves borrowing cheap Japanese Yen and investing overseas, where interest rates are higher. The interest rate differential can be pocketed as a profit. A rising Yen is not nice for carry traders, so the expectation that the Yen may rise drives the carry trades to repay their Japanese borrowings. This also leads them to purchase Yen, so by rushing to the exits they also drive the Yen higher.

The second occurence is an example of positive feedback, which is induced by the first.

Reply With Quote
The following user says Thank You to Fat Tails for this post:
  #4 (permalink)
Georgia, US
Trading Experience: None
Platform: Various
Favorite Futures: Various
josh's Avatar
Posts: 4,965 since Jan 2011
Thanks: 5,262 given, 11,740 received

Thanks FT :-)

Reply With Quote


futures io > > > Yen falling and fundamentals regarding earthquake

Thread Tools Search this Thread
Search this Thread:

Advanced Search

Upcoming Webinars and Events (4:30PM ET unless noted)

futures io is celebrating 10-years w/ over $18,000 in prizes!

Right now

Thanks for everything -- $250 in Amazon Gift Cards ready to give away

Right now

Journal in July -- over $2,500 in prizes w/NinjaTrader


Similar Threads
Thread Thread Starter Forum Replies Last Post
Greek vote...fundamentals...yeah, they do matter RM99 Commodities Futures Trading 1 June 29th, 2011 09:15 AM
EarthQuake 3D cory Off-Topic 0 April 16th, 2011 01:52 PM
Biggest Earthquake in 140 Years Hits Japan Quick Summary News and Current Events 10 March 15th, 2011 03:59 AM
Fundamentals in Google Earth Ryanb The Elite Circle 2 March 11th, 2011 01:16 PM
Follow news, economy and fundamentals while trading? shodson Traders Hideout 2 July 22nd, 2009 04:39 PM

data, feedback, forex, funding, information, treasury, txt

All times are GMT -4. The time now is 08:50 AM. (this page content is cached, log in for real-time version)

Copyright © 2019 by futures io, s.a., Av Ricardo J. Alfaro, Century Tower, Panama, +507 833-9432 WhatsApp Business,
All information is for educational use only and is not investment advice.
There is a substantial risk of loss in trading commodity futures, stocks, options and foreign exchange products. Past performance is not indicative of future results.
no new posts