Anyone Watching the USD/JPY Action Tonight?
August 16th, 2007Holy sheeeeeeeeeeeiiiiiiiiiiiiit. Hats off to USD/JPY shorts tonight.
Via: Bloomberg:
The yen rallied to its highest since 2006 against the dollar as investors fled carry trades after global stocks fell and companies in Australia and Canada sought emergency funds because they were unable to refinance debt.
The yen rose against all currencies bar the Brazilian real and reached the strongest since March versus the euro as traders repaid loans in Japan used to buy higher-yielding assets elsewhere. Australia’s Rams Home Loans Group Ltd. failed to refinance A$6.17 billion ($5 billion) of short-term U.S. loans, helping trigger the biggest slide in Asian shares in a year.
“People are throwing in the towel on carry trades,” Simon Derrick, chief currency strategist at Bank of New York Mellon Corp., said in London. “Two key factors required to make carry trades work, steady or depreciating funding currencies and low volatility, are no longer there.”
The Japanese currency advanced 1.2 percent to 115.25 per dollar at 11:26 a.m in London, after reaching 115.13, the strongest since December 2006. It climbed as high as 154.24 per euro, the strongest since March 14, before trading at 154.33.
I almost had a heart attack when I got alerts on my cell phone saying the USD/JPY went down by 100 pips in 3 minutes. I was like WHAT the **** !!
One part of me is glad I’m not in the market at the moment or I might be crying.
Another part of me regrets not having jumped in and shorted the USD/JPY to death!!
That thing was INSANE.
Anyone watching the DOW? We seem to be in a slo-mo stock-market crash.