Bad News for Carry Trades
Mar 11th, 2008 | By Sean Hyman | Category: US Dollar & Forex TradingThe Nikkei busted through the 13,000 level and plummeted over 430 points. The Dow has plunged over 100 points so far and can’t seem to hold the 12,000 level.
More jobs were lost as we found out in Friday’s Non-Farm Payroll report. There was a loss of over 60,000 jobs this month and last month’s loss was revised even worse also (-22,000).
You can see from the chart below that the Dow keeps heading lower. Look out below!!!
Hold onto your hat. It’s not going to be pretty in stocks…but it can be a great thing for the short sellers of these carry trades such as EUR/JPY.
Unfortunately, this also means that the U.S. is headed for more economic woes in the short-term. That will just inspire stocks and carry trades to fall even lower.
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