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Futures Slide As Quad-Witching Has A Violently Volatile Start After Massive BOJ FX Headfake; Oil Tumbles
zerohedge.com / by Tyler Durden / 12/18/2015 06:49 -0500
Arguably the biggest event overnight was yesterday’s BOJ announcement which was widely expected to be non-event, yet ended up being anything but, when, as expected, the Bank of Japan did announce it would keep overall JPY80 trillion monthly QE unchanged, as forecast by 41 of 42 economists, however it also announced it would extend the average maturity of JGB holdings to 7-12 yrs, would establish a new program for ETF purchases targeting the stocks issued by companies “proactively making investment in physical and human capital”, and lastly would boost the maximum issue amount of each J-Reit to be bought from current 5% to 10%.
And so the market was suddenly wrongfooted assuming the BOJ was actually launching another episode of easing, sending the USDJPY soaring, until suddenly the realization swept the market that not only was the incremental action not really material, but even Kuroda spoke shortly after the announcement, confirming that “today’s decision wasn’t additional easing.”
The result was one of the biggest FX headfakes in recent days, perhaps on par with that from December 4 when EUR shorts were crushed, as the biggest carry pair first soared then tumbled…
The post Futures Slide As Quad-Witching Has A Violently Volatile Start After Massive BOJ FX Headfake; Oil Tumbles appeared first on Silver For The People.
Source: http://silveristhenew.com/2015/12/18/futures-slide-as-quad-witching-has-a-violently-volatile-start-after-massive-boj-fx-headfake-oil-tumbles/
