Erik T.'s picture

The Definitive USDJPY Speculation Thread

Since we've enjoyed a great conversation over in the Definitive Dollar Rally thread, I thought I'd start a new thread to discuss another currency that I think has a lot of meaning in the world economy, and which also presents a speculation opportunity: The Japanese Yen.

okubow's picture

Why did the dollar go up today?

Yesterday the Fed announced that it would keep the target federal funds rate at 0 to .25%. So why did the Dollar index go up?

Doesn't the Fed's decision to keep interest rates low send a bad signal? (ie. They're ready to keep injecting cheap money into the economy.)

Or is the signal that the Fed is fearing deflation? (This would suggest that the dollar is a safe place to park some cash for the time being.)

Also . . .

Is breaking below 75 some kind of pyschological barrier for the dollar index?