eToro – Forex Trading Forum

[BlueinGreen]

hi all,

this morning the Yen is correcting its recent down move against the dollar and strongly continues to gain against other carry pairs.
The USDJPY has dropped form 110.35 yesterday to 108.40 this morning, The AUDJPY EURJPY and other leading carry trade pairs have dropped significantly- (the AUDJPY as far as 93).

Apparently The yen is being bought as Japanese investors are unwinding long positions in higher-yielding currencies. ( unwinding = undo). The risk of a global slowdown and the following rate cuts in major economies is cussing investors to convert trier trades back to Yen as a safety measure.

It looks like that traders are abandoning the carry trade for now = (In carry trades, investors get funds in a country with low borrowing costs and buy assets where returns are higher – like buying AUDJPY)

but this is a welcoming move for every trader who has some interest entering a carry trade in the near future-
after all , at some point , when investors would feel safe again , the carry trade will be attractive again.

Main events today


9:30am GBP Claimant Count Change Forecast 17.5K Previous 15.5K

10:30am GBP BOE (bank of England) Inflation Report

1:30pm USD Core Retail Sales m/m Forecast 0.5% Previous 0.8%

1:30pm USD Retail Sales m/m Forecast 0.0 Previous 0.1%


Core Retail Sales = Change in the total value of sales at the retail level, excluding automobiles;


Happy trading