Sep. 7 at 5:26 PM
$SPY $QQQ $INOD This may not be good news for the Tech and AI trade.
"The yen surged to a seven-month high on Monday as traders reassessed the battered currency's outlook, driven by expectations of faster Bank of Japan policy tightening and growing bets that Japanese investors could repatriate funds."
If Japanese investors repatriate funds (yen carry trade unwind) the US market will see strong selling especially in tech and AI. In August 2024 the yen carry trade caused the
$QQQ to fall 15% within 2 weeks. And the
$SPY fell 6% within 2 weeks.
https://live.euronext.com/en/financial-news/yen-surges-seven-month-high-dollar-drifts-ahead-us-inflation