MarketWatch (January 26)
“The U.S. dollar took another hit on Monday, weakening to its lowest levels in four months, as talk of a coordinated intervention to prop up the competing Japanese yen intensified. A stronger Japanese currency could end up translating into trouble for U.S. stocks, as it did on Aug. 5, 2024, when a sharp unwinding of the yen carry trade was blamed for a selloff in global equities.”
Tags: Blamed, Carry trade, Coordinated intervention, Currency, Dollar, Japan, Prop up, Selloff, Stocks, U.S., Unwinding, Weakening, Yen
Financial Times (August 7)
The equity sell-off in the U.S. “could have triggered the unwinding of the carry trade, not the other way around. And the timing suggests this is what happened. The equity sell-off did not start in earnest until Friday of last week — two days after the BoJ raised rates, or after currency traders had time to digest the news.”
Tags: BOJ, Carry trade, Currency traders, Equity, Rates, Sell-off, Triggered, U.S., Unwinding
Reuters (March 1)
“Strong investor inflows into bond markets this year mean traders and bankers are confident the European Central Bank will have a smooth start to unwinding its huge bond holdings, but the long term impact of its ‘quantitative tightening’ is a big unknown.”
Tags: Bankers, Bond markets, Confident, ECB, Holdings, Impact, Inflows, Investor, Long term, Quantitative tightening, Smooth, Strong, Traders, Unknown, Unwinding
Washington Post (June 20)
As the Federal Reserve moves closer to an eventual unwinding of its massive quantitative easing program, the dollar looks poised to gain, disadvantaging U.S. exports. “For investors around the world, the great unwinding has begun, with sharp swings in different world bond and stock markets as money is shifted in response to the likelihood of higher interest rates and possibly stronger economic growth in the U.S. Currency markets are moving too – and it may mean a further drag on U.S. exports that are already stuck in neutral.”As the Federal Reserve moves closer to an eventual unwinding of its massive quantitative easing program, the dollar looks poised to gain, disadvantaging U.S. exports. “For investors around the world, the great unwinding has begun, with sharp swings in different world bond and stock markets as money is shifted in response to the likelihood of higher interest rates and possibly stronger economic growth in the U.S. Currency markets are moving too – and it may mean a further drag on U.S. exports that are already stuck in neutral.”
Tags: Bonds, Currency markets, Exports, Fed, Quantitative easing, Stocks, Swings, U.S., Unwinding
