🇺🇸 FED SIGNALS POTENTIAL YEN INTERVENTION — PLAZA ACCORD 2.0?

History may be repeating itself.

In 1985, the U.S. dollar had become too strong:

• Exports were collapsing

• Factories were losing business

• Trade deficits were soaring

Solution? The Plaza Accord: U.S., Japan, Germany, France, and the U.K. coordinated to weaken the dollar by selling USD and buying other currencies.

📉 Impact over 3 years:

• Dollar index fell ~50%

• USD/JPY dropped 260 → 120

• Yen doubled in value

The result: markets followed, not fought, government action.

• Gold surged

• Commodities rose

• Non-U.S. markets rallied

• Global asset prices rose in USD terms

Today:

• U.S. still has large trade deficits

• Currency imbalances are historically high

• Yen is extremely weak

Last week, the NY Fed conducted USD/JPY rate checks — a classic precursor to FX intervention.

No official intervention yet, but markets already reacted, remembering the Plaza Accord’s power.

⚡ If a coordinated FX move happens again, assets priced in USD could skyrocket.

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