USDJPY Slumps To One-Month Lows As Ukraine Fears Spark Carry Unwind

With Friday's farcical 3:30pm ramp firmly in mind, USDJPY has opened decidedly down-beat in very early (and illiquid) trading suggesting a rude-awakening for US equity futures when they open...

Meanwhile, ever so quietly, the safe-haven bid for Swiss Francs has continued with EURCHF smashing to 14 month lows...

Charts: Bloomberg

Comments

[JeremyWS]

Called it (almost) - ZH too predictable - https://twitter.com/JeremyWS/status/440186613767753728

[InjectTheVenom]

You didn't unwind that !

[DoChenRollingBearing]

Gold, fishez.

[Headbanger]

Can you say... fuckashit??

[Mr Pink]

Futures being is just a "suggeston".

Get ready for a rip roaring Monday on Wall st. 

[Headbanger]

Ha!!!!    LMFAO!

And thanks!

[skwid vacuous]

let me guess, 8am stick save followed by 10 am stop hunting algo ramp job to the friday highs... ?

[markettime]

 Zombie Apocalypse sends the DOW to new highs today!!!!

[Tracerfan]

Just added you as a follow on Twitter.  Are you really 18 years old?

[JeremyWS]

not sure why someone would lie about that?

[Oh regional Indian]

He was clearly paying you a compliment, being smart for one so young etc.

[smlbizman]

question still not answered....

[JeremyWS]

yeah figured was complement - thanks. Yes am 18.

[DeadFred]

I hear there are a lot of 18 YO females on Twitter and FB who are really 50 YO males. I don't use either so it's just a rumor to me.

[Neethgie]

Kevin henry accepts his challenge.

[jubber]

The market isn't even open yet???? another two hours to go

[wallstreetapost...]

Good.  Fuck this carry trade and its record market leveraging. Time to blow this lemonade stand up and show it for what it is....all fucked.

[jbvtme]

please don't give lemonade stands a bad name...

[xamax]

But why ?????
It must be over 102

[nelsonmandella]

~ Louder #  China v s  JPN  

[Sufiy]

Dollar Crashed Below 80.00 What Is Next For Gold, Copper And Lithium? 

In a few words: they all are going much higher now. Let's discuss why we think it is going to be the case.. This week we had the very important move in the US Dollar:

http://sufiy.blogspot.co.uk/2014/03/dollar-crashed-below-8000-what-is-ne...

[DoChenRollingBearing]

Ouch.  That means my haircut is going to cost more in Peru.  Bummer.

[Non Passaran]

European haircuts may end up being very pricey too

[TheFourthStooge-ing]

I see what you did there.

[gatorengineer]

watch the whipsaw on this one....  gonna be brutal....

[foxenburg]

I am resigned that this will not be bullish for gold. Nothing ever is these days. If gold rise tomorrow morning I know it will be monkey hammered in the afternoon.

[greatbeard]

>> it will be monkey hammered in the afternoon.

Well, yeah.  Nobody said this was going to be an easy fight.

[HaroldWang]

Don't worry, no nukes flying in Ukraine = rally for US equities. Won't remotely be an issue by tomorrow's cash open.

[Jackagain]

BTE....up 3%....

[GrinandBearit]

If if the futures gap down big, the algos will push it back to new highs this week.

Count on it.

[Spungo]

"Don't worry, no nukes flying in Ukraine = rally for US equities"

They'll rally even higher if nukes do end up flying.

[The_Ungrateful_Yid]

Algos is bullish on war...follow the fed.

[Sufiy]

Currency Wars: The Yuan's Silent Scream - Portrait Of A Derivatives Bomb Being Detonated

David Kranzler published a very interesting article confirming our discussion about the ongoing Financial War involving USA, Russia and China now. Bo Polny on the chart above presents his view about the implications of US Dollar crash below 80.00 level for the Gold market and you can find our thoughts on the links  below.

http://sufiy.blogspot.co.uk/2014/03/currency-wars-yuans-silent-scream.ht...

[Remnant_Army]

Have no fear of worldly unrest...

http://www.thewarningsecondcoming.com/tell-them-i-love-them-but-i-want-t...

[thismarketisrigged]

everyone on here knows, including myself, that by tomorrows opening bell, regardless how  much futures may dip overnight, that by tomm morning, certainly by 10 am, we will be way off the lows, or most likely green.

this is just another bullshit event made up so that whenever its solved, the markets can rally another 20 percent, when they willl have not sold off 1 percent even on this news to begin with.

just like the deb ceilling and everything else, this is just another bullshit thing so bob pisani can say tomm or whenever '' well the markets are reaching new highs today, i think its due to ''investors'' feeling relieved about ukraine calming down, etc''.

its all bullshit and we all know it. 

i dont care if futures on the s&p drop 15 handles tonight, i am not buying this bullshit

[garypaul]

+1,000,000

SPOT ON

[Boston]

I wonder what US Treasury futures will do when they open up in a few hours?

My guess is they might rally....a bit.

[Cannon Fodder]

So people here have explained to me previously the basic concept of why the USDJPY is correlated to the S&P - it's the "carry trade" - which as I understand it is borrowing of Yen or selling short yen on the currency market and then investing that in dollar denominated equities.

So how does it actually work? Are they literally taking out loans? Or is it all selling short unlimited amounts of yen? What amount of currency are we talking about here? Is this 1 or 2 big players doing this or many "smaller" players/brokers etc? What is the holding period in these trades? Minutes? Days? Weeks? Is this people or all algos?

Thanks for putting up with my questions.

[shitco.in]

http://www.princeton.edu/~hsshin/www/yencarrytradesubprime.pdf

[Racer]

They will just unhook the hook so all will be well

[jubber]

already back up to 10163