Markets may be looking to Japan's central bank to goose the economy, but easing may have reached its limits, with the next phase in corporate hands.» Read More
In the wake of the crisis in Japan, the yen has strengthened dramatically, which is counterintuitive. Usually, when a country's economy is expected to weaken, so does its currency, but Japan is a unique case.
There is no way to underscore the depth of the tragedy we see playing out before us as the potential of a nuclear nightmare of unprecedented proportions unfolds before our eyes. And while it pales in comparison to the human toll, the Japanese economy is also surely facing a period of great challenge.
The yen is settling into a range after coordinated intervention by G-7 countries, but there's plenty of excitement elsewhere — it's time for your FX Fix.
The G7 gang is moving in and markets are reacting.
The G7 is stepping into the Forex markets in a move intended to aid Japan and halt the rising yen, with Joseph Trevisani, FX Solutions , and Ben Lichtenstein, TradersAudio.com.
The Group of Seven nations have agreed to a secret protocol to guide their coordinated intervention and won’t reveal it in order to keep currency markets guessing, according to people familiar with the matter.
The G7’s agreement on joint action to push the yen lower has, so far, had the desired effect, reversing much of this week’s gain for the yen and boosting equities in Tokyo.
As the market begins the process of second guessing the G7’s coordinated action to keep the yen lower, High Frequency Economics is warning investors the damage caused by the disaster in Japan is being both understated by the government and underappreciated outside of people in the immediate vicinity.
Knee-jerk reactions to catastrophes often fall wide of the mark, Stephen King, chief economist at HSBC told CNBC.
Here's what you should be watching Friday, March 18.
Better news from the Japan crisis today, as the nuclear power company Tepco appears to be on track to complete a power line to the Fukushima nuclear power plant this afternoon Tokyo time.
Ahead of the teleconference of G-7 finance ministers and central bankers on the yen, traders wait to see who will intervene in the markets.
Japan will get what it wants from the Group of Seven teleconference of finance ministers and central bankers Thursday night, but G-7 sources say the group is still waiting for Japan to ask.
Many players are convinced that this evening’s conference call of G7 finance ministers and central bankers will set the stage for major selling of the yen by the Bank of Japan in order to weaken it. But the market is divided on whether other major central banks will join in with coordinated intervention.x
"Until investors know the extent of the damage and nuclear fallout in Japan, the only certainty in the capital markets is that uncertainty will prevail," one strategist says.
While we await the outcome of the nuclear disaster in Japan, we could be witnessing a structural change in the global financial markets.
The emotional investor roller coaster is on hyperdrive as the nuclear situation in Japan remains unknown. With 2011 gains wiped out and now the Yen soaring the markets wait to see if the central banks will intervene.
Traders point to Japanese investors repatriating assets as a significant cause of the yen's dramatic rise. Really?
This week's market action has left a lot to be desired. But given everything that is going on, we should probably be thankful. After falling some 4-5% from its recent highs, the S&P 500 remains in positive territory for the year.
The yen rocketed to a postwar high against the dollar late Wednesday, and the market's showing little sign of calming today. It's time for your FX Fix.