Markets

Kuroda surprise cut = erased

Negative rates overwhelmed by negative sentiment

USD/JPY is down nearly 200 pips today and has now erased all the gains from the surprise BOJ move towards negative rates.

The thing is, rates aren't really all the negative because they weren't applied to deposits and included several other caveats. The rally was exaggerated by the Johnny-come-lately shorts getting blown out.

Even with all that, the extent and violence of the turnaround is surprising. The FX market is signaling some major worries about the US dollar.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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