In the last eight months, almost all of the trading activity has been guided by the movements of the carry traders, who have sent the JPY and the CHF to new record lows, while AUD, NZD, GBP and EUR have reached either new record or multi-decade highs.
One of the most affected currencies by this rebound is the Yen that has seen an incredible surge of over 3,000 pips against the GBP, in a panic-related move generated by the carry traders unwinding their positions.
- Review the opinion of our expert Tony Juste in the Advisor's Blog
In-Depth Analysis
- Weekly Forex Market Commentary - Unprecedented liquidation of carry trades by Global Forex Trading Ltd.
- Daily Market Report: Forex - The Yen rose against the dollar as turmoil in the credit markets prompted investors to unwind carry trade by ICICI Bank
- Daily Analysis - Yen Rises to Highest Since 2006 as Investors Exit Carry Trades by Finotec Group Inc.
- Daily Forex Strategy Briefing - Full-blown Unwinding of Carry Trades by CMS Forex
- Forex Trading Strategies - Massive Unwinding of Carry Trades by Saxo Bank
- Daily Market Briefing - Carry Trades Continue to Sell Off by FXCM
- Morning Report - Yen strengthens on carry trade unwind by Westpac Institutional Bank
- European and US summary - The unwinding of carry trades continues to dominate the foreign exchange market by Forexnews.com
- Forex Trading Signal on Carry Trades - Carry Trades by JCL Capital
Related News
- Yen recovers some ground but still way off recent highs (Thomson Financial New)
- Yen strengthens further against US dollar, euro in Asian afternoon trade (Thomson Financial News)
- Bank of Japan to inject 1.2 trln yen into banking system as rates rise (Thomson Financial News)
- Yen Surges To 13-month High On Credit-market Fears (Dow Jones)
- Yen outshines other currencies as investors undo risky trades (Thomson Financial News)
- Fed injects 12 bln usd into banking system in second operation today UPDATE (Thomson Financial News)
Analysts' Comments
- Tony Juste, FX Advisor at FXstreet.com:
"I warned all of you about the irrational market behaviour, what I called 'carry madness', time and time again for over 7 months, and I did not stop warning even when my own positions were in negative territory and I looked like the only one loser among traders." - The Advisor Blog (FXstreet.com) - Pong Teng Siew, research head at MIMB Investment Bank Bhd:
"The yen-carry trade has contributed a large part to the global liquidity boom and at below 105 to the dollar, that contributory part to the liquidity boom would have been taken out of the system." - The Edge Daily
