Over the past week just about every major currency has taken a dive against the Yen. The first was the U.S Dollar, followed by the Canadian Dollar, Swiss Franc, and the Euro. Today the strongest currencies for the carry trade the British Pound, Australian Dollar, and New Zealand dollar have all seen significant declines. Granted we've seen dips in all these currencies in late Feburary and early March when the first news about the U.S. sub-prime mortgage problems began to emerge. But with further negative news about the U.S. housing market and a corresponding decline in liquidity in the bond markets are U.S. hedge funds and other major players beginning to unwind their carry trades?
- Joined Mar 2007 | Status: Fundamentally Technical | 4,446 Posts
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