Cristy,
I just noticed your comment about the Euro being a funding currency for USD assets. That situation will only continue to exist so long as the interest rate for borrowings in Euros is sufficiently lower than the rate available on USD assets.
In fact it is at times (perhaps briefly) when there is doubt if that will continue to be the case that you get one of the best trades - the 'Carry Unwind trade'. That trade is very high volatility because they all start to run for the exit at the same time!
I just noticed your comment about the Euro being a funding currency for USD assets. That situation will only continue to exist so long as the interest rate for borrowings in Euros is sufficiently lower than the rate available on USD assets.
In fact it is at times (perhaps briefly) when there is doubt if that will continue to be the case that you get one of the best trades - the 'Carry Unwind trade'. That trade is very high volatility because they all start to run for the exit at the same time!