From Joe
Did you miss my Asymmetric Trading Masterclass? There’s still time to catch the replay…
The Asymmetric Masterclass Replay is now up and ready for your review.
Keep in mind → This will only be up until Sunday at midnight. Then I will quit hosting the site and I’ll have to take it down. So make sure you view it before then.
And one more thing…
I cover a lot in this call. I detail my strategy for picking asymmetric bets. A strategy that has helped me see returns of 246%, 279%, and even as much as 1,675% over the last 9 months. I cover the sectors I think have the biggest asymmetric opportunity over the next few months. I even show you how you can get the details on three specific asymmetric trades I’m looking at right now.
And yes, near the end of the call I extend a special invitation to join me and a small community of people as we scour the market looking for these asymmetric trades. It’s up to you if you want to join but spots are filling up fast (in fact, I was worried we were going to fill up last night).
So if you’re interested, or you just want to learn more about asymmetric trading, I suggest you watch this masterclass right away.
I hope you enjoy it!
-Joe Brown
News
Japanese yen weakens to 156 against dollar after Bank of Japan leaves rates unchanged
The Japanese yen slid to over 156 against the U.S. dollar on Friday after the Bank of Japan left its benchmark interest rate unchanged. The BOJ kept its benchmark policy rate at 0%-0.1% as expected. Japan’s central bank also said it will continue to conduct bond purchases in line with the March decision. The yen touched fresh lows following the decision, hitting 156.79 against the U.S. dollar in afternoon trading. Tokyo’s headline inflation rate for April came in at 1.8%, slowing from the 2.6% in March. Core inflation in the capital — which strips out prices of fresh food — sharply fell to 1.6% from March’s 2.4%, missing expectations of 2.2% from economists polled by Reuters. Tokyo inflation data is widely considered as a leading indicator of nationwide trends.
China's yuan hits downside limit in 'cash' trades
China's sliding yuan has been hitting the weak end of the band in so-called cash settlement transactions this week, making it challenging for banks and businesses on the mainland to transact, traders say. Under unrelenting pressure from rising U.S. yields and outflows from China, the yuan is at five-month lows against the dollar and has been declining to near its 2% policy band limit each day. The yuan's decline to the weak end of the permissible band underscores the heavy demand for dollars and rising depreciation pressures on the currency. In onshore markets, the yuan finished the domestic trading session at 7.2458 per dollar, its weakest such close since January 2008 and down 658 pips or 0.91% from previous late night close of 7.18.
Citi, JPMorgan See Carry Trade Revive as Fed Hawkishness Spreads
Emerging-market currencies will be attractive for carry traders as hawkishness has been spreading from the Federal Reserve to many developing central banks, according to strategists from Citigroup Inc. and JPMorgan Chase & Co. “We have made the case in the past that emerging-market carry was historically high but would likely have normalized by mid-2024. This now looks less likely, keeping the carry baskets more attractive,” Citi strategists including Dirk Willer said in a report. “Hawkishness has been spreading from the Fed to many EM central banks, which is not atypical in a strong dollar environment.” The clearest move came from the central bank of Brazil, they said, adding that the monetary authority removed guidance for a 50 basis-point cut in interest rates and suggested a slowdown in easing instead.
Global Bond Rout Pauses for US Inflation Data as Rate Bets Fade
A selloff in global bonds paused as traders waited for US inflation data to shed light on whether the Federal Reserve will be able to cut interest rates this year. Treasuries gained on Friday after a rout this week pushed yields to their highest levels of the year, with European rates following suit. Japan’s benchmark securities advanced after the nation’s central bank indicated monetary policy will stay easy for now. Evidence is mounting that a slowdown in US consumer price growth toward the Fed’s 2% goal has stalled. That’s forced the market over recent weeks to push back the expected timing of the first rate to the end of this year, and unwind positions betting on a rally in fixed income assets.