Posts tagged 'Mrs Watanabe'

But what does Mrs Watanabe think?

Apparently Sarkozy has phoned Hu Jintao on Thursday, to beg er, ask China to wire cash through the EFSF. Somehow.

Shouldn’t someone also be calling Mrs Watanabe? Read more

It’s midnight in Tokyo

…and that must mean the yen is weakening. Interesting observation from Nomura’s foreign exchange analysts:

The secret behind the yen’s outperformance relative to US rates is likely to be found in Tokyo. By breaking down the price action in the different time zones (Tokyo, London, New York) we show that yen strength during Tokyo trading hours has been important in overall trading dynamics. Over the last 3-4 months, the cumulative yen gain during Tokyo trading hours stands at 4%. This compares to a cumulative loss of 4.5% during London hours, and a cumulative loss of 2% during New York hours over the same period… Read more

Will nothing deter Mrs Watanabe?

Mrs Watanabe – Japan’s famous retail currencies investor — laughs in the face of emerging market political instability. In fact, she laughs then invests some more.

From Yunosuke Ikeda at Nomura’s global FX team: Read more

Yen intervention 101: why it won’t work

Those yen-intervention rumours are flying, fuelled by reports of discreet phone calls between the Japanese PM’s office and the Bank of Japan, not-so-discreet complaints from captains of Japanese industry and dire warnings from economists.

That’s not to mention the recent – and rather mystifying – pledge by Japan’s finance minister of  “appropriate action” on the strong currency. Read more

Tokyo FX traders keep calm and carry on

Japanese regulators are nannying their charges again. In this case it’s the thriving community of foreign exchange day traders, often dubbed the “Mrs Watanabes” of the country, who account for as much as 20-30 per cent of the volume of Tokyo’s entire spot currency market. For more on the regulatory moves, see FT Alphaville.  Read more

Yen frolics and Mrs Watanabe’s world: What’s she up to now?

We’ve left her alone for long enough and now we think it’s time to see what Mrs Watanabe (for those who still believe the yen carry trade is driven by this iconic and possibly mythical Japanese housewife investor) is up to.

The Times seems convinced she’s pulling the pin on her carefully built-up foreign currency investments and the whole yen carry trade is about to implode. Read more

That yen-carry trade and Mrs Watanabe’s ‘new gig’

There seem to be as many views about the future of the yen carry trade as there are references to the ubiquitous Mrs Watanabe, the supposedly archetypal Japanese retail investor who is on a relentless hunt for yield. So, after the excitement of the yen’s wild little ride last week (from more than Y118 to the dollar to Y112 in little more than five days), the Japanese currency seems to be hovering on Wednesday in modestly robust mode at around Y114.80 to the dollar, amid considerable speculation about the innermost thoughts of Japanese housewives.

And we are wondering whether predictions of the “great yen-carry unwind” and the “death of Mrs Watanabe” were premature. Read more

‘Mrs Watanabe’ leads the pack as carry traders dash for the exit

So what is Mrs Watanabe up to? Amid snowballing predictions of the death of the yen carry trade, the Japanese currency is surging as high-yield currencies such as the NZ and Australian dollars slide.The yen briefly hit Y115.71 to the dollar on Thursday in Asia, nearly a full yen above its value in New York on Wednesday and above Y116 for the first time in five months, as Bloomberg reported that stock-market losses prompted investors to exit holdings of higher-yielding assets funded by loans in Japan.

Japan’s currency also climbed to the highest in more than four months against the euro and the dollar as traders exited so-called carry trades amid a global rout in equities. The yen rose to Y80.26 against New Zealand’s dollar at 2pm in Tokyo from Y82.78 late in New York yesterday, a 9.6 per cent rally this week, the most since October 1998. It rose to Y93.70 versus Australia’s dollar from Y95.62, added Bloomberg. Read more

The elusive ‘Mrs Watanabe’: she’s at it again, or is she…?

So the yen carry trade has roared back after a big wobble last week, when Japan’s currency strengthened to nearly Y117 against the dollar. On Wednesday, it fell against 13 of the 16 most-active currencies, reaching Y119.25 as Asian stocks rose, Australia’s central bank raised interest rates and the Fed said the US economy can withstand mortgage defaults, reports Bloomberg.

And as investors regained confidence in so-called carry trades, buying higher-yielding currencies – the Australian dollar, say – with funds borrowed in Japan, the yen looked as though it had every intention of declining further. Read more