Friday, October 31, 2008

News for Sale: BOJ Cuts Rates by 40 Percent -- Plus: EUR/JPY Chart

the Bank of Japan reclaims its former glory with a 20 basis point cut in its official interest rate. the currency markets respond with a quick Chinese fire-drill. the EUR/JPY rate for example dropped from 126.80 to below 125 in less than two minutes, then popped right back up to 126.80. as I write it's drifting back down a little.

is this going to be one of those 'sell the news' events? if the calvary's going to come with some follow-through on this week's Nippy weakness the next few hours would be a good time to make the charge.

30 minute barchart of EUR/JPY below. of interest are the three bounces around 125. I've been expecting intervention in the Yen. trying to enforce a floor at this level is something we might except the geldpolitikers to pull. I'm still looking for the Nippy to strengthen. but willing to let the market convince me other wise. show me the money, I'd say. you Know... if went around saying shit like that.