Day: August 16, 2007

Carry Trade Ruined by Stocks Market Chaos

EUR/USD reached its two month minimum and almost broker out of its long-term bullish trend today. World stocks markets continue to fall with the main reason lying in panic caused by the crisis in subprime lending U.S. sector. Cashing out of stocks papers causes also carry trade retreating with a huge buying back of JPY and USD (in a lesser dimension) for other currencies — thus the rally of JPY and USD. Even bad […]