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 economical news from U.S. don't stop from buying it for Euro.
Weekly employment data showed a little increase of the initial jobless claims - 322k from 316k previous week, while analysts expected a small decrease.
Housing data continue to come out worse and worse - housing starts came out to be 1381,000, while building permits - at 1373k, which is approximately 25k lesser than the market was expecting.
Weekly employment data showed a little increase of the initial jobless claims - 322k from 316k previous week, while analysts expected a small decrease.
Housing data continue to come out worse and worse - housing starts came out to be 1381,000, while building permits - at 1373k, which is approximately 25k lesser than the market was expecting.
Labels: carry trade, forex fundamental analysis, housing, initial jobless claims
posted by enivid at 7:17 PM
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