How the Yen Carry Trade Works This week I wanted to look at the “Japanese carry trade strategy”. The Japanese yen (JPY) carry trade is a well-known strategy in the global financial markets, particularly in the forex market. The strategy involves borrowing...
Consequences of High National Debt A couple of weeks back, we saw the U.S. Fed cut rates by 50 basis points. Many analysts believe this is now the start of a series or cycle of rate cuts in the U.S. This means the dollar will be cheaper to borrow and should in theory...
Why is Australia and China relationship important? The Australian and Chinese economies are closely intertwined due to several key factors, including trade, investment, and economic policy. Here are some of the main connections between the two economies: Trade...
What happens after a interest rate cut? This week I thought I’d look at what typically happens after interest rate cuts or a series of interest rate cuts. This could be helpful as it could help us with longer term trade planning. Historically, when central banks...
Sahm Rule The markets have been really volatile the last couple of weeks as a US interest rate decrease is now not only all but guaranteed in September, but there is a really good chance that the cut is bigger than predicted, i.e. 50 basis points. There are also a lot...