When Japan raises interest rates, three things will inevitably happen:
- The Japanese Yen appreciates
- Financing costs increase
- Arbitrage trading ceases to operate
This forces positions to be closed, not just "risk reduction."
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When Japan raises interest rates, three things will inevitably happen:
- The Japanese Yen appreciates
- Financing costs increase
- Arbitrage trading ceases to operate
This forces positions to be closed, not just "risk reduction."