jr7107

Investors, Traders Create 'Perfect Storm' for Currency ETFs

Japan is an export economy. Rates are 0.5%. JPY export goods will become more expensive (autos, plasmas, LCDs). The BoJ intervenes to support the exporters and reduces rates. The FXY is political. How does the carry trade unwind? What low rate currency does it go to? Why does the non-resource based JPY stand up?