1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

GBP/JYN volatility

Discussion in 'Beginners Bootcamp' started by forexgump10, Oct 23, 2007.

  1. forexgump10

    forexgump10 Recruit

    Joined:
    Oct 4, 2007
    Messages:
    4
    Likes Received:
    0
    I would like to learn what the most important factors are that are responsible for the volatility in currency pair GBP/JYN. As a newbie I know to stay away from that pair, but I would like to do some research. If anyone can point me in the right direction, I would be grateful. Greetings from Amsterdam, Boyd
     
  2. Pipmaster

    Pipmaster Recruit

    Joined:
    Oct 3, 2007
    Messages:
    3
    Likes Received:
    0
    GBP/JPY is the pair that represent carry trade interest the best. As a result the pair is extremely volatile due to the volume of trades (interest). Especially at the moment. The market is on the verge of a large sell off. This would involve money being taken out of riskier assets such as equities and higher yielding currencies, causing carry traders to sell these higher yielding currencies; in turn strengthening the carry trade low yielding favourites such as the Yen and the Swiss Franc.
     
  3. forexgump10

    forexgump10 Recruit

    Joined:
    Oct 4, 2007
    Messages:
    4
    Likes Received:
    0
    Thanks, Boyd
     

Share This Page