This sort of second guessing (in the market) will continue until we actually see what the real impact of the situation is going to be on the U.S.
If you try to put a macro story with (Wednesday's) moves, it would be caution about how the BOJ is going to move and when they're going to move.
If you try to put a macro story with moves, it would be caution about how the BOJ is going to move and when they're going to move.
There's been such a significant move that model funds are turning now and have to buy the yen. Any move higher in the dollar is going to be sold into.
The market was caught a little short there and some intraday players were forced to trim positions.
The market is saying what we're not going to get is a surprise in terms of rates -- we're not going to get some cuts because of storm-damage problems.
Until the dollar breaks through some sort of bigger levels...I don't think we're going to get another leg up.
We're hearing it may be 6 p.m. Tokyo before an announcement comes out, and that's making people think it's a story to react to tomorrow. The timing of it is important because we're hearing lots of rumors.
The view that people do hold is that the kiwi will drop. But people are nervous about doing it against the dollar, so they go elsewhere.
As long as U.S. rates are rising you've got this double-whammy effect of spare cash looking for yield and yield is there,
