Carry Trading Question

There was an article in the WSJ journal today stating that there was volatility in the NZD and JPY recently due to carry trades. Do carry trades that cause sig- ficant volatility usually occur during certain days of the week? If so, which days, and which pairs?

The story was probably referring to the general strategy of some folks to buy high yielding currencies (like NZD) and sell low yielding ones (like JPY). This isn't necessarily something that happens on particular days, but rather as a broad activity.

In theory, there is a weekend carry trade since spot forex is a 2-day settlement market. Therefore, if someone were to buy on Thursday, they would settle on Monday, meaning they either recieve or pay the extra two days of interest differential for the weekend. The studies I've seen, however, don't indicate any day of the week bias in something like USD/JPY, which would be a target pair for that kind of action.

the best time to trade is in the middle of the week because the most powerful movement is currently happening.