Disliked{quote} I think you've got to forget the carry. Carry might be an issue if NZD was going sideways, but it looks to me like it's going down, at least to 8500, perhaps to 8400, perhaps to 8000. I've never bothered to work out the carry, but really, is it that much? If big traders (the banks, hedgies, institutions, etc.) were only concerned about carry a high yielder would never drop and a low yielder would never rise.Ignored
Yes, I just did a little checking to see how much if costs.
Currently on NU it would cost .75 pips per day to hold short. Not enough to be concerned about.
Thanks