BANK OF JAPAN MIGHT HAVE INTERVENED IN THE CURRENCY MARKET.
USD/JPY pair dropped from 163.6 to 159.5 in the last 6 hours, a 2.5% move.
This type of move doesn't happen without central bank intervention.
The BOJ makes its rate decision tomorrow.
If this drop is real intervention, it means officials are moving before the decision to avoid a much bigger yen selloff if tomorrow's outcome disappoints markets.
The 30-year Treasury yield is above 5.2% for the first time in twenty years. Warsh is afraid to raise rates due to the adverse consequences for markets & the economy. But his failure to raise rates will have similar consequences. We’re damned if he does and damned if he doesn’t.
A temporary lull in the Iran conflict may be masking a much bigger risk. Escalating tensions around the Strait of Hormuz, Red Sea, and Black Sea continue to threaten global oil supplies, keeping energy markets vulnerable to another major price shock. #Oil#MiddleEast #EnergyMarkets #Geopolitics
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