Based on press reports, one might have thought that "the carry trade" has been unwinding since Feb/Mar of this year and should be done by now.
I think that Sanford Grossman, for instance, was doing long the dollar, so ... this chart doesn't apply to all / everyone, clearly.
via Alea
What one risks when you run currency-unhedged, pic is Euro-Yen.
Update: To be read alongside this week's notable negative swap spread.
Friday, October 24, 2008
Chart of the Day : Almost Instantaneous Destruction of the Carry Trade
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