Where to find announcements that affect Japanese yen?
I noticed that there was unusually large movement on the GBP/JPY currency pair in the end of October '08 to the beginning of November '08. I looked on Forex Factory for an explanation, but found none that would explain that kind of movement. My question is twofold: 1) What caused such huge movement in this market at this time? 2) Since it's not on Forex Factory, where else can I find a heads up about whatever caused these huge (mainly bearish) runs?
Public Response to Where to find announcements that affect Japanese yen?
- Japanese newpaper - I hope you know Kanji
- Most believe that the recent strength of the yen is caused by yen being used as a carry trade to purchase foreign securities. Since interest rates in Japan has been very low and investing in Japanese securities have shown poor results over the past several years, investors had previously borrowed yen to invest abroad. As the markets have soured, investors have sold the foreign securities and repaid their loans causing foreign currencies to be sold and the purchase of yen driving the yen up and the foreign currencies down. A similar situation (fairly low interest rates and easy money) appears to have occurred with the US dollar but not to the same extent.