Happy New Year, NZD!
Re: EurUsd short term 15 replies
NFP nice bump up on EURUSD 2 replies
DislikedI don't have specific data but believe me most people here are idiots.
That has nothing to do with the fact that I am drunk at the moment.
Or does it?Ignored
Dislikedyen carry trade means....borrow yen becasue of its lower rate n buy the another bond(safe asset).......same like the situation when the stocks tumble.....JPY usually tend to strenghten.....thats call yen carry trade.....
u have ur own opinion...and this is my opinion..soryy if i make a mistake..heheIgnored
Dislikedaah sorry you are right, that is the YEN carry, Yup, borrow cheap money and invest in something that is of higher interest
buying all jpy pairs would give you carry, but when the unwind happens lookout!Ignored
DislikedWhy u said like that?reason?Ignored
Dislikedwell another way to think about it is like this.. carry trade mean borrowing fund with a low cost to invest in the high return asset basically outside the country of origin.
Let say i'm the investor and i see that Japan is offering a quite low cost of fund (i.e the interest rate) and i know for a fact that i can make a money if i invested this fund outside Japan.
Then this is what i will do..
1) will borrowed some fund in Japan to invest it outside Japan
2) My borrowed fund which i had borrowed earlier in Japan is definitely denominated in Yen...Ignored
DislikedHappy New Year:
Dislikedi do not think carry trader to invest in US since the diferent rate is very low.....i think they will favor in australian (since it is common curency i choose it..but many other nation have higher rate like brazil)....
actually USD is high yield curency..since FED cutted the rate till <0.25 it tend to be low yield and the status same like the yen.......in my oppinion FED should hike the rate to make the market normally move same like before....
and yen strengthen due to risk averse......but if i said like this..u also will said usd will strenght...Ignored
DislikedThey would think twice to hike the rates the fed i dont see them do that the bond market will tank on that and they would have a huge loss on there balance sheet.
But at the end it doest matter it will tank anyway china will dumb holding and do less purchases they already diverse a lot lately so thats a verry strong sign.
But he people like the kick cans in the economy thats how they roll so they probally not gonna hike and otherwise i wil short the fucked us bond market especially 2 years.
But whe have japan first this year new yearIgnored