Ander's Market Theories

[AnderL]

Dollar\Yen is grinding up since the 19th. Not sure if this is the preemptive of a future carry trade coming or not. Strength in dollars vs Yen only means that there is demand for US currency. Sell Yen buy dollar. Foreign money flow coming into the US. I would think that they would be selling treasuries, but they may be supporting the Fed in their consumption of them. If the Fed is willing to buy then the BOJ should be interested in doing so as well. Supporting the Dollar means that Japanese goods become more affordable. Get the US consuming again.

This wont end well. Long Dollar until at least 103.50. If it break out there then its off to the races and the Fed will start talking up inflation.