2026 Yen Intervention Risk & Connections to 2024 Yen Carry Trade

• Japan's Yen intervention is normal, but coordinated intervention with the US is rare, last seen in 2011.
• Speculators have shifted from long to short Yen, indicating potential for increased volatility if coordinated intervention occurs.
• A weaker US dollar, potentially resulting from intervention, could benefit US exports and consumer purchasing power.
• Canada's decision to halt free trade talks with China reflects a complex geopolitical landscape and US influence on allies' trade policies.

The discussion focuses on potential coordinated Yen intervention by Japan and the US, highlighting its rarity and implications for currency markets. It also touches on the broader context of US-China trade relations and Canada's recent decision not to pursue a free trade deal with China, influenced by US pressure. The analyst suggests that a weaker dollar could be beneficial for US exports and consumer purchasing power, contributing to easier global financial conditions.