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Japanese investors are piling into long-term dollar swaps, with the yen-dollar basis for 30-year contracts plunging to its most negative this year in late May. The basis has stayed near those levels even after the Federal Reserve expanded market liquidity.
Heavy Japanese buying of dollar assets reflects currency-funding pressure that supports the dollar against the yen. This is a financial flow with no direct effect on grain, oilseed or feed prices.
bloomberg.comChikako MogiJun 18, 2020After 2,356 past bullish macro events, US Dollar (Broad) moved a median +0.2% over 5 sessions (60% higher; middle half -0.3% to +0.7%), and +0.4% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
