The September market doesn’t look good so far. It’s almost a given fact that the FED would cut rates at their September meeting, but the market doesn’t seem to welcome it very much.
There are probably many opinions about this week’s market movements, but it looks like Japan’s actions would be the biggest issue this month. Japan’s economic situation isn’t getting any better.
The decline in the Japanese stock market this week is also not trivial. Japan is expected to have no choice but to raise rates soon.
Somehow, no one is saying anything out loud… but they seem to be admitting it.
The Japanese yen has risen by almost 3% against the dollar this week.It’s becoming very similar to the atmosphere in early August. The only difference from a month ago is that everyone is somewhat prepared this time.
September is when the question of when Japan will raise rates is more important than when the US will lower rates.
