Market rumors suggest that the Bank of Japan may raise interest rates to 0.75% at its December 19 policy meeting, with a rate hike of 25 basis points. If this comes true, it would be the highest level since 1995. As soon as the news broke, the yen immediately started to strengthen from the 155 level. This move's spillover effect on risk assets is worth paying attention to, as yen carry trades have long been a key source of global liquidity.
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RunWhenCut
· 10h ago
The Japanese yen is about to take off, and carry trades are going to be in trouble.
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SmartMoneyWallet
· 11h ago
The Bank of Japan played an interesting hand here. From 155 to the current trend, the capital flows are crystal clear. Whether the carry trade loosens depends on how global liquidity responds, and retail investors probably haven’t caught on yet.
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EyeOfTheTokenStorm
· 11h ago
155 has broken the yen carry trade threshold. Once capital outflows accelerate, those of us who rely on liquidity need to be cautious.
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SerNgmi
· 11h ago
If the Bank of Japan really raises it to 0.75 this time, the end of carry trades will arrive, and global liquidity will have to be reshuffled.
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GasDevourer
· 11h ago
The yen is surging this time, carry trades are about to blow up, and risk assets are trembling.
Market rumors suggest that the Bank of Japan may raise interest rates to 0.75% at its December 19 policy meeting, with a rate hike of 25 basis points. If this comes true, it would be the highest level since 1995. As soon as the news broke, the yen immediately started to strengthen from the 155 level. This move's spillover effect on risk assets is worth paying attention to, as yen carry trades have long been a key source of global liquidity.