fxmatters

• 27 June 1878 – Japan adopts a new currency system based on the yen.
• 27 June 1882 – the Bank of Japan is established.
• 30 June 1984 – last sixpence minted in England after being is used since 1551 (a reminder of how inflation is largely a modern phenomenon).
• 29 June 2006 – NZD/JPY touches ¥68.5 before current rally.

The upward NZ dollar momentum is strong right now. But to be sustained it will need even higher NZ interest rates. And continued global comfort with the carry trade. Read what will test these presumptions by the market in the September quarter in Changes ahead in September quarter

• 20 June 1965 – successful investor & presidential advisor Bernard Baruch dies. He earlier had wrote “When as a young and unknown man I started to be successful I was referred to as a gambler. My operations increased in scope and volume. Then I was known as a speculator. The sphere of my activities continued to expand and presently I am known as a banker. Actually I had been doing the same thing all the time”.

The first RBNZ intervention pushed the NZ dollar down by over 1% last week. They will probably try again at some stage. This suggests some tweaking of tactics by hedgers and investors … Read Intervention provides tactical opportunities

The more things change, the more they stay the same. The RBNZ delivered a surprise rate hike. The NZ dollar rises to new highs. That still leaves an even higher NZ dollar depending on even higher interest rates. Is this what will happen? … Read Driving forces remain the same

• 13 June 1920 – US Post Office says children could not be sent by parcel post!
• 14 June 1984 – NZ Prime Minister Robert Muldoon announces an early election—the RBNZ had to borrow NZ$1.7 billion in the next four weeks to support the NZ dollar.
• 16 June 1812 – the City Bank of New York, the forefather of Citigroup, opened at 52 Wall Street.

Global players took a liking to risk last week, including the high-yielding NZ dollar. The NZ TWI appreciation of the week was something that, on average, only happens around once a year. Interestingly this has produced reasonably consistent reactions in the next week or so … Read Trade what you observe

• June – NZD/CAD depreciated in 9 of last 10 years.
• 3 June 1946 – Hungary issues a one sextillion pengo note (that’s 1 followed by 23 naughts!) in response to the world’s worst case of inflation.
• 5 June 1933 – US paper money is no longer redeemable in gold as the gold standard is ditched, much to the chagrin of experts at the time.