Yen Tag

Japan’s Reopening Trade

18 Oct, by Steven Vannelli, CFA in Economy, Markets

In this quarter's strategy package, we share our analysis on Japan's Reopening Trade. In the full slide presentation, we cover the following: -Japan seems to have crushed the COVID-19 virus (for now at least) with daily new cases under 400/day. Lockdowns are over and the economy...

Has the Long Yen Trade Run its Course?

04 May, by Bryce Coward, CFA in Markets

Despite an unprecedented amount of monetary easing taking place at the Bank of Japan, the yen has since the middle of 2015 been on a consistently strengthening trend versus the USD. As paradoxical as it may seem in a period when the Fed talked about,...

Long-End Of US Yield Curve Suggests A Stronger Yen

13 May, by Knowledge Leaders Team in Economy

The relationship between the Japanese Yen and the spread between the US 30-year treasury yield and US 10-year yield has had a very tight negative correlation (-0.85) over the past 10-years (since 1986 when the bond spread series begins the correlation is -0.61). Since the...

A Checkup on the Yen & Leaderhisp Trends Among Japanese Stocks

25 Mar, by Knowledge Leaders Team in Markets

After two years of devaluation, the Japanese Yen is quite undervalued by our work.  In the first chart below, we show the JP Morgan broad and narrow Japanese Yen relative to long-term trendlines. By these measures, the yen is around 25% below the 25 year...

Checking in with Dr. KOSPI

18 Dec, by Knowledge Leaders Team in Uncategorized

South Korea’s KOSPI stock index is often viewed as a barometer for global growth because of the country’s important position in the global supply. Thus, the KOSPI index is often referred to as Dr. KOSPI. So what is Dr. KOSPI’s prognosis of the global economy...

Is the Yen Hinting at a December Taper?

12 Dec, by Knowledge Leaders Team in Uncategorized

We’ve been highlighting how S&P 500 futures and the YEN/USD cross have basically been moving tick for tick recently, so we thought it prudent to point out that the relationship has basically dissolved over the last two days, and in fact has started to reverse....