Tag Archives: CHF/JPY

EUR/JPY rallies hard following hawkish ECB cut and trade war optimism.  EUR/JPY tracking positive sentiment in financial and commodity markets.  While the trade war tensions seem to be easing, with stocks climbing and risk appetite returning in droves to financial and commodity markets, EUR/JPY is up 0.79% on the US session so far following what has been perceived as a hawkish rate cut from the European Central Bank earlier today. EUR/JPY is currently trading at...

Extracting Meaning from PPP “An alternative exchange rate – the purchasing power parity (PPP) conversion factor – is preferred because it reflects differences in price levels for both tradable and non-tradable goods and services and therefore provides a more meaningful comparison of real output.” – the World Bank Headquarters of the World Bank in Washington. - Click to enlarge We have it on good authority that the...

Summary: Yen and Swiss franc are funding currencies. This goes a long way to explaining why they rally on heightened anxiety. The Swiss have lower rates than Japan and the franc is less volatile than the yen, but technicals argue for caution. Retail investors and some institutional investors focus on the asset they want to acquire in anticipation of price appreciation. The game for some institutional investors...