Note - from June 24th 2009, this blog has migrated from Blogger to a self-hosted version. Click here to go straight there.
The Bank of Japan jsut dived headlong into the USDJPY market, driving USDJPY from 117.62 to 117.95 in a matter of less than 20 minutes. Of course given that it happened at the most illiquid time for EURUSD, it has slammed that cross down 60 pips in the same time period.
It doesn't matter all that much (although it will sting), and it doesn't change anything that I said about the Euro this morning (although it does change the starting point, and makes 1.2000 harder to get - maybe 1.1950 is a safer target for this week with 1.2000 for next week).
The US Trade Balance data (out Thursday) is likely to show a deficit worse than US$60 billion for the first time ever - which should get the market's mind off this silly obsession with interest differentials.
Bloody BoJ... stuffing up my day like that. Central banks are an excresence on a boil on the arsehole of the global economy - but the BoJ's currency manipulations are ALWAYS unsuccessful.
