Yesterday’s interest rates are used for today’s trade. Today’s interest rates are used for tomorrow’s trades. All interest rates are found on central banks websites and freely offered and displayed prominently.
Here’s the laugh. People pay good money to Bloomberg, Reuters and others for today’s interest rates. Canada’s Corra rate for example releases at 9:00 am EST but all required is wait till 11:00 am EST or 12:00 Noon for today’s interest rates for tomorrow’s trades. Why pay money for rates offered for free.
Understand this point. Every market price on the planet to include FX, stocks, Stock indices, gold, metals and everything else moves by an interest rate. Trust these words. Hedge funds don’t understand this point nor today’s currency analysts. The world of trading lacks understanding to how markets operate. They will never have understanding unless they play around with the essential numbers.
Next. Yesterday’s BOJ to today’s USD/JPY and JPY/USD trades.
131.42 and 144.04 and 148.42
139.80 and 139.53
127.51 and 146.32, 152.97
0.0071597 = 139.67 as 1 divide 0.0071597
0.0067372 and 0.0076086
0.0071668 and 0.0071525
0.0065368 and 0.0078419
JPY/USD 7 numbers. USD/JPY must have corresponding numbers for accuracy. USD/JPY’s big break for lower is located at 136.34. Wrong. The actual number is 136.3432 then JPY/USD as the same number = 0.0073344.
See 127.51 = 0.0065368 while 148.42 = 0.0076086. USD/JPY requires a lower BOJ interest rate to move lower.