Where can you find messages that affect the Japanese yen?
I've noticed that there were unusually large movements in the GBP / JPY currency pair in late October '08 to the beginning of November '08. I looked at Forex Factory for an explanation but found none that would explain such movements. My question is twofold: 1) What caused such great movement in this market at this time? 2) Since it is not at Forex Factory, where else can I find a heads up on what caused these huge (mostly bearish) run?
Most believe that the recent strengthening yen because the yen is used as a carry trade to buy foreign securities. Since interest rates in Japan have been very low, and investing in Japanese securities have shown poor results over the past several years, had previous investors borrowed yen to invest abroad. As markets have soured investors have sold foreign securities and repaid their loans causing foreign currency up for sale and purchase of yen yen up and operate foreign currency down. A similar situation (relatively low interest rates and easy money) seems to have occurred with the U.S. dollar, but not to the same extent.
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