BREAKING: As reported by the Financial Times, it appears that the NY Federal Reserve desk conducted rate check(s) on Friday in an effort to weaken the dollar/strengthen the Yen This is incredibly rare, and signals that a LOT more dollar weakness might be ahead of us
Milo
MiloJan 24, 00:43
ALERT: Bank of Japan might have just intervened in currency markets Overnight, following the Bank of Japan press conference, the Japanese Yen dramatically strengthened against the dollar BoJ officials aren't officially commenting yet. This might have been a 'rate check'
A 'rate check' is when a large player like a central bank's trading desk, calls up banks/dealers and asks for a quote for a large amount (i.e. on JPY) It signals intention to intervene, allowing the market to do the work for them (without having to actually intervene)
383