Wednesday, March 16, 2011

Carry trade unwinding

Carry Trade Unwinding!!!!!

Japanese Yen/Aussie Dollar Currency Pair

Since the Earthquake in Japan the carry trade has been unwinding, especially today. THIS IS HUGE NEWS FOR THE STOCK MARKET. This generally shows up pretty well in the Yen/Aussie Dollar Currency pair. When it rises risk assets fall, including the stock market. For a description of what the carry trade is and its implications check this, this, this, this, and this.

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