NEXT WEEK: TWO RATE DECISIONS, 24 HOURS APART, BOTH POINTING THE SAME WAY. TIGHTER.
๐ฏ๐ต BoJ, June 16: expected to hike toward 1%, a 30-year high.
๐บ๐ธ Fed, June 17: expected to hold, inflation near 3.8%, no cuts priced.
Here's what's different.
Past BoJ hikes rattled markets too, but back then the Fed was cutting, cushioning the blow. This time the Fed is on hold.
The yen carry trade unwinds into a Fed that isn't there to catch it.
That's the setup worth respecting.