Source: Bloomberg
Author: Yumi Teso, Michael G Wilson, Saburo Funabiki, Masahiro Hidaka
In the office on the seventh floor of the Asian Square on Thursday, Vishnu Varaathan's phone ringing sounded.At that time, the yen soared rapidly, and customers anxiously wanted to know what would happen next.
"The price trend has become very fast," Varaathan, head of the economy and strategy of Ruisui Bank."There is no doubt that there will be more fluctuations."
The basis of the yen has created the largest increase in the past year. It has been laid in Asia. Previously, the speeches of the Bank of Japan's governor Shi Tian and the man and one of his deputy were regarded as a hint of raising interest rates in front of them.
The weak Japanese government bond auction is even more popular.Traders can give up the empty short position without any encouragement. On Thursday, the yen in New York had soared by nearly 4%.
When the yen accelerates soaring, Yoshio Iguchi, managing director of Traders Securities, who is in Tokyo, has woke up and was worried."At that time, I had to manage the risk management of the turbulent stop loss transaction of margin traders, and my hands were trembling," he said.
Low liquidity, algorithm transactions, and the crazy return of the yen short supplementation of the market have been magnified, and crazy transactions have forced some investors to wait and see.The yen observer predicts that the US non -agricultural employment data announced on Friday may become the next catalyst, and the market will fluctuate more.
eyesight
Nick Twidale is one of the investors who are waiting and ready to welcome more market fluctuations.In the office of Sydney Bridge Street, he stared intently at the computer screen.FP Markets traders have been staying very late on Thursday, and they have been paying attention to the trend of the European market.At that time, as more investors joined the buying frenzy, the yen went up.
"Trading in these market fluctuations is too tricky, and we are encountering liquidity gaps." Twidale, CEO of FP Markets Asia -Pacific region with 26 years of market experience."If you are sitting in front of the trading desk, you just perform an order -it is difficult to do two -way operation when you see 4%of the fluctuations in a day."
USD/yen was slightly higher than 147 yen (about S $ 1.36) at the opening of Asia on Thursday, and then fell to 141.71 yen in the New York market.The rise in Friday, the yen rose 1.1%against the US dollar.At 4:22 pm Tokyo time, the Japanese yen vomited the increase of Friday, at 144.35 yen, highlighting the challenge facing the trader.
Objective traders said that investors feel "confused and uncertain" after experiencing roller coaster fluctuations, while others are worried that if the US non -agricultural employment data is unexpectedly strong, the market may enter the "US dollar bear market tonighttrap".
George Boubouras and others choose to view the market trend.
"I make a wall view," the research director of hedge fund K2 Asset Management, Boubouras, who has 30 years of investment experience."The market responds to the entire idea about the transformation of the Bank of Japan within a month instead of a month, so there may be more similar fluctuations in the future."
