Bank of Japan Posts on Forex Blog
Quick Pips: JCB Holds at 0.5%, Carry Trades Off
May 20, 2008
As expected the Japanese Central Bank held interest rates steady at 0.5% overnight. Despite the bank's desire to raise rates, fears of a looming international slowdown held policy makers in check.
The global slowdown echoed through out the currency markets Tuesday. High energy prices, sluggish profits, and inflation fears are leading forex traders away from the carry trades. New Zealand, Australia, and Columbia where all notably off. Conversely, the Yen - the grandfather of all carry trades - was up despite the JCB holding firm.
Bank of Japan, Carry Trade, interest rates
Forex Traders Keep Your Eyes Open - A Bevy of Currency Data Tomorrow
May 19, 2008
Tomorrow will be one of those fun days to watch the ticker, as a slew of data will be coming from around the world. I always love watching the morning ticker while at the gym on these days. Keeps my emotions in check, and on rare occasion I met another investor/trader when I see faces reacting with glee/horror to the latest report.
Anyways, the reports. Overnight, the Japanese Central bank will meet and decide on rates. They are expected to hold steady at 0.5%. A shocker, eh?
Also overnight, the German ZEW sentiment will be reported. Some traders think a positive report will lead the Euro out of the $1.53 - $1.56 range. Interestingly, Trichet came out today warning that the Credit Crunch is still ongoing, but inflation remains the top concern. Combine that with France's weak GDP number (0.3% expected for Q2, half of Q1) and methinks things may not look rosy for the Germans. Of course, the fine folks at Barclay's disagree, and the UK actually saw a rise in home prices (wtf?!).
And finally, the US producer price index will be released tomorrow. The German ZEW and US PPI can definitely move things, so watch for any break through of the Euro range!
Bank of Japan, ZEW Survey, PPI, interest rates, BOJ
Meet the new Boss, same as the Old Boss
Apr 9, 2008
Masaaki Shirakawa, acting governor for the Bank of Japan, was confirmed by the upper house of Japanese parliament Wednesday. This came after the previous 2 nominees had been rejected. The upper house, lead by the Democratic Party, is opposed to appointing retired bureaucrats, as the 2 previous nominees were. to the central bank. Two seats remain open on the Bank of Japan's board, and will likely stir more trouble between the ruling party and opposition Democratic Party.
The Bank of Japan held rates steady at 0.5%, as expected.
Read more at CNBC
Bank of Japan
