A Yen For Yuan?

Summary

Discussion of the potential effects on equity, bond, commodity, capital and asset markets regarding:

CHF/USD + JPY/USD Carry Trade Pairs; Chinese NPL and new debt.

China Japan Trade Balance; China Hong Kong Trade Surge.

Keiretsu Bank Duplicity?

Carry Trade Pairs

NIRP has and is spooking savers into CASH, globally. Banks and central banks involved are having to liquidate USD holdings to meet deposit demands in the local currency. Since Feb 1st, it's been a tsunami of dollars driving KING DOLLAR down from 100 to 96 DXY.

The Feb 5th BOJ NIRP announcement (only new excess deposits pay the negative rate tax, all previous deposits are grandfathered at the older positive rates), sent the yen sideways for one day, after which it continued an+8.2% ascent. Regarding the resulting decline in the dollar and rise in gold and oil:

"Gold and oil didn't rise, DXY (the dollar index), fell - reflecting un-regulated, carry-trade like (and Central Bank competitive devaluations), speculative and volatile, position-squeezing sorties." - Salmo Trutta

A potential nuance or subtlety... look at the Swiss franc CHF/USD and Japanese yen JPY/USD pairs since December, in which there would appear to be plenty of carry trade unwind in those appreciative moves vs. KING DOLLAR.

Above note, since Feb 1st JPY yen gaining 8.2%

Above note, since Feb 1st CHF franc gaining +5.4%

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