http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/http://www.fxstreet.com/technical/http://mediaserver.fxstreet.com/images/fxstreet-provider-logo1-en.gif7http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-06-30.htmlInterest rate expectations recharged the carry trade this past week; but a significant jump in risk aversion throughout the capital markets curbed the currency strategy. On balance, the shock from the sharp equities sell off yesterday reversed earlier gains in the DailyFX Carry Trade Index leaving the gauge 57 points lower on the week at 28,843. Supporting the air of caution in an otherwise strong carry trend, market condition indicators were reflecting modest improvements from last week.Mon, 30 Jun 2008 08:55:37 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-06-30.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-06-20.htmlLast week’s pull back in the carry trade has turned into a full-blown reversal as yield differentials contract and risk aversion rise. This past week, the DailyFX Carry index fell 364 points to 28,489 – brining it back below the falling trendline that had been breached in an upside break at the end of May. This reversal comes with significant support from market condition indicators. Volatility – an unwanted factor when looking to collect steady income on the carry – marked a significantFri, 20 Jun 2008 08:57:17 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-06-20.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-06-09.htmlJust a week after the DailyFX Carry Trade Index made its bullish break from the downward sloping trend channel that has defined risk appetite since last summer’s subprime meltdown, the market seems to have once again fallen back into doubt about the return of low volatility and yield friendly conditions. Since last week, the Index has pulled back $212 from a near three-month high to $28,822. Supporting the decline in price, the DailyFX Volatility Index rose to 10.26 percent - indicatingMon, 09 Jun 2008 07:01:28 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-06-09.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-06-02.htmlThe global credit crunch seems to be loosing its grip on the financial markets; and in its place, improving liquidity levels and growth outlook have revived a taste for risk. For the currency market, the appetite for yield boosted the DailyFX Carry Trade Index $123 to $29,020 and extended a modest yet steady advance for the basket. What’s more, with this past week’s strength, the market seems to have pushed through resistance in a descending trend channel that has guided carry lower since theMon, 02 Jun 2008 08:27:50 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-06-02.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-05-26.htmlThe carry trade has maintained its upward trajectory, but the popular strategy has certainly lost steam. The DailyFX Carry Trade Index rose modestly since last week to 28,928 – though this advance merely lifts the basket to the top of a developing congestion zone and more importantly to the significant downward sloping trendline that has defined sentiment since last summer. Looking at broader risk trends, this divisive trendline may hold up to any further carry rebound. Capital markets haveMon, 26 May 2008 06:05:36 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-05-26.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-05-21.htmlThough it is a relatively tentative rise, risk trends seem to be broadly improving. The DailyFX Carry Trade Index has maintained the upward trajectory that has held since the March reversal. What’s more, a look to the details underlying this advance reveals most of the general conditions surrounding risk appetite are improving. The DailyFX Volatility Index shows price action is stabilizing into its steady rally with expected fluctuations for the coming three months cooling to 2.88 percent. AsWed, 21 May 2008 07:12:29 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-05-21.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-05-12.htmlThe high end of the yield curve has taken a significant hit over the past week; and carry trades have suffered the consequences. The DailyFX Carry Trade Index sunk $298 dollars since last Friday after failing to over take a descending trendline that has been directing the basket since risk appetite was tripped up by the subprime meltdown last summer. In turn, a breakdown in USDJPY and other yen crosses has weighed on risk reversals, which show a greater demand for puts. However, during thisMon, 12 May 2008 06:12:48 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-05-12.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-05-05.htmlThrough there is growing concern as to how long high yielding currencies like the New Zealand and Australian dollars can keep their rates at record highs, interest in the carry trade has still improved over the past week. The DailyFX Carry Trade Index rose $296 since last week with help from a modest cooling in currency market volatility and a general improvement in the outlook for the yen crosses. Carry Trade On The Rise As Volatility Cools, Rate Differentials Improve Fed And BoE Boost RiskMon, 05 May 2008 09:00:37 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-05-05.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-04-11.htmlRisk appetite has stabilized and the carry trade found a shaky footing this past week thanks to an unusually quiet economic docket. However, this period may end up being the lull before another wave of deleveraging and high volatility. Over the past few days, though there haven’t been many market-worthy indicators that specifically influenced the taste for general risk or the health of the credit market, there have been a number of headlines that have added to the carry trade outlook. On theFri, 11 Apr 2008 06:25:19 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-04-11.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-04-04.htmlInterest in the carry trade has faltered this past week, but it is clear from price action in the high and low yielding pairs that the market isn’t ready to give in to risk. Over the past week, both NZDUSD and AUDUSD have seen considerable pull back from the multi-decade highs. On the other hand, there has been a break in momentum at the short end of the yield curve. The Japanese yen’s steady advance has been stalled with a sizable reversal across the FX market. What’s more outside theFri, 04 Apr 2008 11:15:22 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-04-04.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-03-27.htmlCarry has wavered over the past week, but demand for yield seems to have held on strong. Over the past few weeks, traders have honed in on the Federal Reserve’s ongoing efforts to stabilize global credit markets and revive the market’s appetite for demand. Since the panic stirred up by the near collapse of Bear Stearns, policy officials have taken dramatic steps to fortify the foundations of the global financial markets. The Fed cut its benchmark and discount rates 75bp, announced a largerThu, 27 Mar 2008 09:50:51 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-03-27.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-03-12.htmlBroad risk trends have once again taken the helm of the broad financial markets. For the currency market’s the interest in the ebb and flow of risk sentiment has attached itself specifically to the popular carry trades. Over the past few weeks, risk appetite (and in turn carry demand) has gone back and forth. Just at the turn of this week, traders’ confidence in steady markets and consistent appreciation in already overbought speculative assets was shaken by reports that major hedge funds wereWed, 12 Mar 2008 11:15:46 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-03-12.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-02-20.htmlnterest in the carry trade continues to improve, but unevenly. High yielding currencies like the Australian and New Zealand dollars have seen a considerable bullish rally over the past week. On the other hand, low yielding currencies have not given up nearly as much ground as the high yielders have lost. This hesitant rebound in interest comes thanks to the relentless deterioration in growth projections and potential problems for the credit and broader financial markets on the horizon that mayWed, 20 Feb 2008 05:58:04 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-02-20.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-02-14.htmlThe carry trade was on the rebound last week; but the momentum behind this positive move is still very circumspect. Conditions in the credit and broad financial markets are still very shaky. Just this past Tuesday, the Federal Reserve auctioned another $30 billion in short term loans through its term auction facility program and received a cumulative bid of $58 billion from 66 banks. This certainly reflects a strong concern over the availability of liquidity at the highest levels. What’s more,Thu, 14 Feb 2008 07:13:13 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-02-14.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-01-22.htmlSince the broad sell off in risk-related assets back in July and August of last year, caution has dominated the market’s taste for risk. The change in sentiment has increased the danger of holding carry trades which rely on low volatility and steady infusions of capital into the financial markets to prevent dramatic fluctuations in the spot rates of currency pairs that lead to capital losses. Now at the start of a new trading week, it is hard to refute the pervasiveness of risk aversion. InTue, 22 Jan 2008 05:54:50 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-01-22.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-01-08.htmlLast week, the DailyFX Dynamic Carry Trade Portfolio was down by 351 pips. The most unprofitable trade was the position we held in the British pound with 241 pips gain in capital depreciation offset by $28 on interest payments accumulated along the last 5 days. Looking ahead, the current circumstances favor a further unwind of carry trades which could benefit lower yielding currencies like the Japanese yen and the Swiss franc. In fact, like we said in our Watch What the Fed Watches weeklyTue, 08 Jan 2008 05:55:24 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2008-01-08.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-12-31.htmlDespite a sharp return to risk aversion and a pronounced Japanese Yen rally, our DailyFX Dynamic Carry Trade Basket actually made 327 pips through the past week of trade. Given clear US dollar weakness, our strongly anti-dollar positions performed quite well through the period. Subsequent outlook for the Dynamic Carry Trade Basket will clearly depend on whether dollar weakness will continue through coming holiday-shortened trade. As it stands, however, overall momentum and risks remain to theMon, 31 Dec 2007 06:20:51 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-12-31.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-12-24.htmlDespite the recent easing on financial conditions the outlook for the carry trade strategy remains very bearish. Short term interbank lending rates remain well above government bond yields of similar maturity and the repeated injections of liquidity by the world’s most important central banks are failing to restore confidence in the global financial system. Last week, the DailyFX Dynamic Carry Trade Portfolio was down by 71 pips in capital but accumulated an additional $87 per basket onMon, 24 Dec 2007 06:22:41 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-12-24.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-12-18.htmlLast week, the U.S. dollar made a sharp recovery against the world’s most heavily traded currencies on news that the Federal Reserve, the Bank of Canada, the Bank of England, the European Central Bank, and the Swiss National Bank were adopting several measures intended to address pressures in short-term lending markets. By injecting short term funds through a broader range of counterparties and against a broader range of collateral than open market operations, Central Banks hope to promote theTue, 18 Dec 2007 05:44:45 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-12-18.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-12-11.htmlExchange rates volatility remains awfully high and as a result of increasing uncertainty traders preferred to stay away from holding positions in high yielders. In fact, last week the DailyFX Dynamic Carry Trade Basket was down by nearly 153 pips. The biggest losses were taken in the long position we held in the Sterling against the U.S. dollar (-205 pips) and in the long position we took in the Australian dollar (-91 pips). On the other hand, the only profitable trade we had was the longTue, 11 Dec 2007 05:52:44 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-12-11.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-12-04.htmlCarry trade has been benefiting from gains in the U.S. stock market which has been rallying on higher expectations the Federal Reserve will cut the Fed Funds interest rate when the FOMC holds its meeting in December 11. In fact, last week the DailyFX Dynamic Carry Trade Portfolio was up by 317 pips and accumulated an additional $87 per basket on interest payments. The most lucrative trade was the position we held in the New Zealand dollar with 123 pips gain in capital appreciation plus $39 onTue, 04 Dec 2007 05:50:54 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-12-04.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-11-28.htmlLast week the DailyFX Dynamic Carry Trade Portfolio was up by 152 pips and accumulated an additional $87 per basket on interest payments. The most lucrative trade was the position we held in the Sterling with 217 pips gain in capital appreciation plus $28 on interest payments accumulated along the last 5 days. Like we said in our Watch What the Fed Watches weekly report, despite the 75 basis points cut in the overnight Fed Funds rate, credit conditions remain very tight and now have theWed, 28 Nov 2007 06:12:00 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-11-28.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-11-20.htmlCarry trade continues to “dance” according to the latest news on the impact of the subprime market meltdown on the financial system. Even so, last week the DailyFX Dynamic Carry Trade Portfolio was up by 321 pips and accumulated an additional $87 per basket on interest payments. The most lucrative trade was the position we held in the Australian dollar with 167 pips gain in capital appreciation plus $20 on interest payments. Looking ahead, even though the Federal Reserve has been actingTue, 20 Nov 2007 06:26:32 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-11-20.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-11-13.htmlInvestors are becoming more risk averse on speculation major banks could announce more write downs tied to subprime home loans, a situation that has been benefiting the Japanese yen and triggering a major sell-off on carry trades. Not surprisingly, during last week, the DailyFX Dynamic Carry Trade Portfolio was down by 540 pips. The biggest loss was taken in the short position we held in the Japanese yen with 415 pips loss. Moreover, since stop losses are activated when we have a weekly closeTue, 13 Nov 2007 06:58:53 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-11-13.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-11-06.htmlDespite the rise in volatility, across the world’s most important equity markets, carry trade returns have been relatively strong. Last week, the DailyFX Dynamic Carry Trade Portfolio was up by 472 pips and accumulated an additional $164 per basket on interest payments. The most lucrative trade was the position we held in the Sterling with 368 pips gain in capital appreciation plus $28 on interest payments. Looking ahead, we expect carry trade to gain the most from U.S. dollar weakness but theTue, 06 Nov 2007 06:54:35 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-11-06.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-10-30.htmlThis week, the DailyFX Dynamic Carry Trade Portfolio was up by 593 pips and accumulated an additional $164 per basket on interest payments. The most lucrative trade was the position we held in the Australian dollar with 292 pips gain in capital appreciation plus $20 on cumulative interest rollover per each standard lot we held. Looking ahead, we expect the combination of strong demand from China with higher commodity prices (Gold is trading at $792 and Coal above $115) will soon be translatedTue, 30 Oct 2007 06:48:57 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-10-30.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-10-23.htmlCarry trade tumbled during this week fuelled by calls for faster Chinese yuan appreciation by the G7 finance ministers and by renewed fears about a potential recession in United States. In fact, the DailyFX Dynamic Carry Trade Portfolio went down by 583 pips. The biggest loss was taken in the long position we held in the U.S. dollar against the Japanese yen (309 pips). The sole profitable trade was a long position we held in the Sterling (161 pips). Last week we said that, banks were stillTue, 23 Oct 2007 10:57:43 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-10-23.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-10-15.htmlThis week, the DailyFX Dynamic Carry Trade Portfolio was up by 328 pips and accumulated an additional US$ 164 per basket on interest payments. Moreover, all the positions we held were profitable. The most lucrative trade was the position we held in the New Zealand dollar with 157 pips gain in capital appreciation plus $39 on cumulative interest rollover per each standard lot we held. Despite the recent performance of the carry trade basket the outlook for this type of investment approachMon, 15 Oct 2007 07:26:39 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-10-15.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-10-08.htmlInvestor’s appetite for carry trade seems to have returned to the world’s financial markets. This week, the DailyFX Dynamic Carry Trade Basket was up by nearly 294 pips and accumulated an additional $164 on interest payments. Moreover, four of our five trades were profitable and the most lucrative one was the short position we took in the Japanese yen with 210 pips. On the other hand, our single loss was taken in the position we held in the Sterling (-52 pips). In the past two weeks, the U.S.Mon, 08 Oct 2007 06:08:11 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-10-08.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-10-01.htmlThis week, the DailyFX Dynamic Carry Trade Basket was up by 525 pips and accumulated and additional $164 on interest payments. Even though,U.S. credit markets remain very tight, with Junk bonds spreads above 400, credit conditions have eased since August and the appetite for carry trade seems to be back. The most profitable trade we took was the long position in the Australian dollar with 264 pips gain. On the other hand, the biggest loss was taken in the short position we held in the JapaneseMon, 01 Oct 2007 07:20:40 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-10-01.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-09-24.htmlThe DailyFX Dynamic Carry Trade Basket is up by 415 pips since last week and accumulated more than $150 on interest payments. The most profitable trades were the long position we took in the Australian dollar with 312 pips gain and a long position we held in the Sterling (259 pips). On the other hand, the biggest loss was taken in the long position we held in the Swiss franc (150 pips). Moreover, stop loss orders were triggered both in the Swiss franc and Hong Kong dollar. Finally, this weekMon, 24 Sep 2007 09:41:00 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-09-24.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-09-19.htmlThis week, the Dynamic Carry Trade Basket was up by nearly 92 pips in value and accumulated more than $150 on interest payments. The most profitable trades were the long position we took in the Australian dollar with 162 pips gain and the short position we have in the Japanese yen (99 pips). On the other hand, the biggest loss was taken in the long position we held in the Sterling (192 pips). News that the Bank of England has agreed to give emergency financial support to the Northern Rock, oneWed, 19 Sep 2007 11:44:04 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-09-19.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-09-12.htmlThis week, the Dynamic Carry Trade Basket was down by nearly 336 pips in value. Exchange rates volatility remains very high and as a result Traders appetite for risk has been very weak. The biggest losses were taken in the long position we held in the U.S. dollar against the Japanese yen (-127 pips) and in the short position we took in the Swiss franc (-202 pips). On the other hand, the most profitable trade was the long position we took in the Sterling with 117 pips gain. Finally, for theWed, 12 Sep 2007 08:44:51 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-09-12.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-09-03.htmlThis week the DailyFX Dynamic Carry Trade Basket lost 79 pips in capital, but this was largely offset by over $150 in interest received. The best performer in our basket was the USDCHF, as CHF weakness allowed for a bounce in the popular carry trade pair. Our largest decliner was the Australian dollar, as the AUDUSD brought 99 pips in capital losses. Uncertainty in risky assets across global financial markets led the Asia-Pacific currency lower, with relative dollar strength doing little toMon, 03 Sep 2007 11:48:01 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-09-03.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-08-24.htmlDuring this week, the Japanese yen staged a spectacular rally against the world’s most traded currencies as losses linked to subprime debt pushed investors to pare holdings of higher-yielding assets funded by loans in Japan. Moreover, USDJPY volatility as implied by one month OTC options climbed to 18 percent, nearly two times the average volatility of the past year As a result of this carry unwind storm, the DailyFX Dynamic Carry Trade Basket fell by nearly 1289 pips during the last week. TheFri, 24 Aug 2007 08:42:30 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-08-24.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-08-17.htmlDuring this week the Carry Trade Basket fell by nearly 247 pips. The portfolio biggest losses were taken in the long positions we held in the Sterling (168 pips), Australian dollar (107 pips) and Hong Kong dollar (84 pips). However, it could have been worst if we weren’t well diversified. Some of our losses were offset by gains in the short positions we held in the Swiss Franc (+80 pips), Japanese yen (+32 pips) and by nearly $120 received on interest payments. The losses have been quite bigFri, 17 Aug 2007 10:20:09 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-08-17.htmlhttp://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-08-06.htmlRisk aversion continues to be the main theme on today’s financial markets but we think investor’s appetite for Carry is likely to return. In fact, viewed from a historical standpoint this is actually one of the smallest major drawdowns since the inception of the Euro (Click here to find out more). This week, the DailyFX Carry Trade Basket was relatively unchanged in capital. Yet, our basket earned nearly $120 on interest payments and 3 out of five trades were profitable. The most profitableMon, 06 Aug 2007 08:44:08 GMThttp://www.fxstreet.com/technical/forex-strategy/info@fxcm.com (FXCM)http://www.fxstreet.com/technical/forex-strategy/dynamic-carry-basket/2007-08-06.html