Sterling Digest, April 11, 2012: central bank fodder

The 2 most active central banks last year are still drawing lots of attention from market participants. Both the BoJ and SNB are major threats of more intervention in the forex markets in 2012. Personally, I am not a fan of trading directly with or against central banks so I stay away from CHF or JPY pairs. However, as so aptly put in Credit Writedowns (below), even investors without CHF exposure should still follow this story. With so much central bank rhetoric, when will the market finally take notice?

• GBP/JPY: Bearish Channel To Guide Rates Down 150 More Pips? (FX360)
• BOJ Upgrades View: Some Improvement In Overseas Economies (Forex Live)
• Japan Finance Minister Hardens Yen Rhetoric (WSJ)
• Yen firms on BoJ, Spain debt fears (Reuters) [Risk flows creeping back in the market.]
• Testing the Swiss National Bank’s Resolve (Credit Writedowns)
• US Dollar, Yen Rally as Beige Book Affirms Recent Shift in Fed Policy (DailyFX)
• What are Central Banks Expected to do in 2012? (KathyLien.com) [With Q1 2012 done, where do we stack up?]

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