Investing.com — Betting on the dollar against the yen has been the hot foreign-exchange trade that has dominated flows, but the trade could now be set for a “treacherous” path ahead, Macquarie warns, as Japan is more likely to follow up last week’s intervention that led to a spike in the Japanese currency amid revived expectations for U.S. rate cuts.
“It’s treacherous to go long on a tactial view,” Macquarie said in Monday note, warning that the Japan’s Ministry of Finance is more likely to intervene again if it “sees some chance of a peak in US-Japan yield differentials,” which drive yen’s valuation,…
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