[00:46 USD/JPY, JPY Crosses: CME Margin Hike A Nail In The Coffin] Tokyo, Mar 5.
The CME hiked its margin on yen positions by 25% Friday, and this looks to have
been a major nail in the coffin for JPY-funded carry trades. The change takes
place three days after the yen had its largest daily percentage increase against
the US dollar. The what looks to be a protracted rise in volatility seems to
have been behind the CME move. In addition to rises in JPY positions against
USD, AUD, EUR and GBP, the CME also upped its margins on US Treasury futures and
the Goldman Sachs Commodity Index. This may have given quite a bit of fuel to
the USD/JPY and JPY-cross plunges seen after the return of Tokyo players today
with retail and margin accounts piling out of carry trades. --
Haruya.ida@thomson.com
[IFR Forex Watch]
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