$SIA (C6L.SG)$ ：Interest Rate disparity could be the caused ...
$SIA (C6L.SG)$ ：Interest Rate disparity could be the caused of Black Monday Market Crashed.
Most BB could be borrowing a huge amount of Yen at near zero interest to purchase hight paying interest US dollars and eventually, purchasing huge amount of US AI stocks and Bitcoin currency.
Why is that so ?
Borrowing cheap money to buy high interest products. And when Japanese faces inflation, naturally, BOJ will need to raise their low interest rate currency, thus, borrowers of Japanese Yen, will have to pay higher interest.
Coincidentally, this comes in a very timely manner, Federal Reserve Chairman Jerome Powell is expected to ease rate next month.
As a result, long Dollars and it's stocks, no longer looks attractive. Thereby, forcing BIG traders to unwind their position in a very big scale manner.
Thus, causing US stocks and US$ to come under tremendous selling pressure.
On the other hand, to pay back the borrowed Yen at a higher interest rates or buy back Yen at a higher price.
Very genuine move isn't it ! Just my observation, and enhanced your analytical skills and sharing my knowledge only. I can be wrong, not suitable for trading. I am not experts.
Most BB could be borrowing a huge amount of Yen at near zero interest to purchase hight paying interest US dollars and eventually, purchasing huge amount of US AI stocks and Bitcoin currency.
Why is that so ?
Borrowing cheap money to buy high interest products. And when Japanese faces inflation, naturally, BOJ will need to raise their low interest rate currency, thus, borrowers of Japanese Yen, will have to pay higher interest.
Coincidentally, this comes in a very timely manner, Federal Reserve Chairman Jerome Powell is expected to ease rate next month.
As a result, long Dollars and it's stocks, no longer looks attractive. Thereby, forcing BIG traders to unwind their position in a very big scale manner.
Thus, causing US stocks and US$ to come under tremendous selling pressure.
On the other hand, to pay back the borrowed Yen at a higher interest rates or buy back Yen at a higher price.
Very genuine move isn't it ! Just my observation, and enhanced your analytical skills and sharing my knowledge only. I can be wrong, not suitable for trading. I am not experts.
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Meng PaPa OP : Sorry, I think I had accidentally deleted my post earlier