I posted my view in your system in your own thread.
Regards,
Jan
Jan,
Have you looked into running exactly the same carry trade on Gbp/Jpy?
IMHO, I believe the rollover credits/ interest payments per mini/lot are almost double that of Nzd/Jpy (OK, the trading range is far greater also!!) .
Cheers,
Tim.
It is a very interesting pair too and has been in a very pleasant long-term uptrend this year and this month. Would think about it a buy definately, no matter how the interest rate gap is far lower (5%-0.25%=4,75%) then NZD/JPY (7.25%-0.25%=7%). But if we'd think about the development in the value, it would be a massive gain. A definite buy.
Regards,
Jan
You are probably right there Jan concerning the current interest rate differentials between the afore mentioned currencies (I haven't checked them!!) .
But, I was refering to the interest payments you're going to get from your broker.
OK, an individual should reflect another, but apparently that's not the case (and I have no idea why!!) .
Taking fxcm as an example, their interest payments for 1 mini lot of NzdJpy is $1.23 per day, for GbpJpy it is $2.40 per day.
Sorry for not keeping this thread devoted solely to Nzd/Jpy!!
Cheers,
Tim.
Interest works out to be much with GBP/JPY as your lot is worth nearly twice up to 1 NZD lot. If you purchased 3 NZD lots, it might come out in USD to be just a little more than what the USD value of 1 lot of GBP
Thus, NZD = less equity per lot.
Hope that helps to understand that the diff
GF
Surely, GBP/JPY and NZD/JPY bith have pip values of $0.85 a pip (to get a US$ account) so how can you be worth less than the other?
Bonus points to get an 'Airplane' quote at the reply!!
This dip on each of of the JPY pairs seems like the ideal chance to begin watching for a long set. Though caution clearly ought to be high considering the discussion of as high as .50 bp rate rise within the next few months. Since I've no place in any carry trades, I welcome this dip... I expect for my sake (isnt it : ) that this dip continues and now I'll get cheaper prices for my hopefully long hold north.
CHF has been shortened a lot as well right now, with rising rates coming (possibly) in Japan, CHF can become close as equivalent a carry trade using its low 2 percent currency interest.
Any other ideas?
I believe the thing that is main is going to be the decision on interest rates in Japan. We are going to have to wait and see, what's going to happen. The truth is, that NZD and AUD are still very strong against JPY.
Between us, I'm hoping for the YEN to gain against NZD and AUD, so we get a better for both.
Haven't looked into the fundamentals a lot recently, so this is simply a wish with no company arguments. But so much as I hear, BoJ should increase rates this month and lay ground for further rate rises. Who knows, we'll have to wait and see, but I'd short in the moment, as the retracement is far from over.
Although I have taken advantage of this change and plan to maintain as long as possible, I couldnt agree more with your statement. With a .50 rate raise by Japan, the market will have no currency to carry against. With JPY power it'd do good things for those that are looking to get into pairs long term such as NZD and AUD JPY.