Usdyen
What do I get it wrong?
I am new in forex and I was thinking that in event of natural disaster e.g. Japan Earthquake, their currency will go down so pairs like GBP/JPY will rise? But of course the opposite happens. Where am I wrong?
Ha. I just posted a similar post. I don't know...I don't understand it either.
Initially i thought it was the big boys expecting retail traders to go long, and where therefore driving markets down to cash in. Or some goverment efforts trying to stop mass depreciation, but now im not so sure. Maybe tomorrow things will move as anticipated.
It's the weekend so nothing really specific happens. Keep in mind, there are trading relations between US and Japan, so always consider this; also, Japan is one of the biggest buyers of US debt (right after China only by a few %). It's possible Japan would sell of some US treasury holdings to pay for the reconstruction after the disaster, think how that would be a kick in the teeth for the US economy. 
Funds for reconstructions will effect the world economy. I don't understand this completely, but i think maybe no JPY going up, maybe USD and GBP going down, because earthquake hits their interests in Japan?
How come the USD is weaker than the YEN after the earthquake and following disasters? The mind boggles.
If Japan is a big Exporter then over the next little while, JPY won't be in much demand (since its exports decreased and the economy is in trouble because of its earthquake). If you are justifying the fall in USD/JPY using the "Insurance theory", then can we expect that over the next little while USD/JPY should increase significantly?
"Japanese shares have tumbled on the first trading day after the massive earthquake and tsunami that hit the country's north-east shore. "
Guess I should have been focusing on the Nikkei rather than the currency reaction. Many dynamics effect the currency movement whereas indices seem more predicable to general fundamentals?
Only a thought
BBC News - Japan's Nikkei ends down 6% in first post-quake session
G7 agrees joint intervention to curb strong yen
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How come the USD is weaker than the YEN after the earthquake and following disasters?
The mind boggles.