Japanese Prime Minister Shinzo Abe’s call for an early election worked in his favor. He called for a snap election to take advantage of his high ratings.
According to news reports, Japanese Prime Minister Shinzo Abe could be calling for a snap election next month to capitalize on the increased approval ratings in August.
The surprise turnaround in the US dollar after the August jobs report on Friday, September 1, 2017, saw the Japanese yen (JYN) lose its gains from August.
Volatility in the currency markets spiked after news of the North Korean missile launch on August 29. Demand for safe haven currencies like the Japanese yen (FXY) and Swiss franc (FXF) picked up in the Asian session.
After the election results were announced in the US, the Dollar Index (UUP) surged to levels above the 103 mark in anticipation of fiscal stimulus, tax breaks, improving economic conditions, and the possibility of rate hikes.
The performance of gold as a contrast to the S&P 500 is reflected during periods of high and low volatility. The S&P 500 has always outperformed gold since April 10, 2013, during periods of both high and low volatility.
Currency-hedged ETFs provide exposure to an investment product. At the same time, these ETFs hedge against the impact of currency volatility on the product’s returns.
