So we’re following forex EUR USD movements today and we have all seen the ginormous collapse of the pair the last day plus. What does it mean for the market as a whole? Well as best I can tell it doesn’t mean a whole lot. It would seem to me that some carry trade...
Sponsored LinkAs we suggested in our last post, the JPY carry trade unwind is continuing. Leveraged investors had mistakenly expected the BoJ to jump in and drive the currency downward were sadly mistaken. Are traders just too myopic to understand the basic implications of devastation like this? Apparently so. Consider for a moment: Let...
Sponsored LinkThe impact of the Japan Quake on the carry trade initially appeared to be adverse, leading to buying of Yen on Friday afternoon I think the impact of the loss of production and shipments will weaken the Yen long term. Estimates are ranging in the loss of economic output in the hundreds of...
The S&P 500 is falling today despite Apple’s good earnings results last night. What gives? If you’ve learned anything from reading our opinion / analysis pieces is that individual equities do NOT drive the market. The forex and derivatives money pool is so much deeper than any security that I wouldn’t care if Apple...
People make money forex trading the AUDJPY cross in the most basic way by taking a long Australian dollar (currently the highest interest rate currency for “developed” countries) position / short Yen, and pocketing the interest premium of ~4.4% less margin interest. Leverage it up 10:1 or 100:1 (very risky) and now your interest...
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