Excerpt from: Forex Analysis
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| May 11, 2007 | | The carry trade is becoming unpopular again | Right now, thanks to global stock drops and boosts in the Chinese yuan, the Japanese yen has started to climb this morning, and the forex trading strategy known as the carry trade is on the outs. Reuters reports on the Japanese yen and the carry trade in currency trading:
Falling global stocks also prompted investors to cut back on
overstretched carry trades -- borrowing currencies like the yen
to fund higher-yielding investments -- ahead of U.S. retail
sales and producer inflation data later in the day. "It's a combination of the weakness we've seen in equity
markets over the past 24 hours, that has been helping the yen,
but probably this last move is likely to have been the result of
some market speculation with regards to China," said Ian
Stannard, currency strategist at BNP Paribas. | Topic Tags: carry trade, currency trading, forex strategy, forex trading, forex trading strategy, forex trading strategy carry trade, Japanese yen, Japanese yen carry trade | |
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