One: The impact of the Japanese Yen Arbitrage funds on the market

Recently, there has been a shortage of rice supply and a pump in rice prices in Japan due to multiple factors. The extreme hot weather has led to a decrease in rice production, while the recovery of tourism has sharply increased the demand for rice from domestic and foreign visitors. Earthquakes and two typhoons have sparked hoarding behavior among the public, exacerbating the shortage of rice and grain.

To cope with natural disasters, many people have started hoarding rice, coupled with the delay in logistics during the traditional Japanese "Obon Festival", which further affects the supply. The Japanese Ministry of Agriculture has promised that with the listing of new rice in September, the supply situation will gradually improve, and it calls on the public to remain calm and avoid panic buying!
1. This brings additional inflation pressure to the Central Bank of Japan, forcing it to re-evaluate the degree of tightening or loosening of monetary policy. As an important component of CPI, the pump in food prices will directly affect inflation data.
2. Due to the short-term inflationary impact of the rice disaster, although the Japanese Central Bank may be inclined to maintain low interest rates to support economic recovery, the rising inflationary pressure may force it to consider raising rates.
Strengthening the expectation of a further interest rate hike in the yen, the dollar is also about to cut interest rates, which will continue to cause the reversal of yen Arbitrage funds (the last global financial market crash was caused by the reversal of Arbitrage funds, and BTCbig dump to $49,000). Perhaps the second crash is on its way...
The scale of the Japanese Yen Arbitrage fund is about $15,000, and almost 10% of it went out last time, which means that nearly 90% of the money is still in various global markets, of course, Japanese Yen trap