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I think I understood the general underpinnings of the carry trade long ago, but I still don't get why markets react in the micro like they did August 5 2024.
https://cdn.satellite.earth/2c3d68f0bdb3aebb8619ffc97ea5f67b5c075dc0b3208a5a27a6c18d59d9418c.png
Nor if the rate hike was a reaction due to market sentiment or what is Japan's game?
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They need to hike to muddle through their monetary mess with rising inflation
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Ah yes. Stemming the tide with hedonic regression and a broom.
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Yes, I agree. I'm also not sure about how intentions to announce and follow up would work in a macro scenario. But, I believe the Japanese would find a way out.