Forex EA Robot Trading Blog

Wow what a week last week, the yen strength seeming to drive the global stock market plunges, which perpetuates itself, and the carry traders are bailing out. Selling begets selling. It seems like the long anticipated unwinding has occurred.. the only question is, where is the bottom of all this? I would certainly be waiting for the daily trend to turn up before 'business as usual'.

Yen Set for Best Week Against Dollar Since 1998 on Credit Risk

Aug. 17 (Bloomberg) -- The yen was poised for its biggest weekly gain versus the
dollar and euro in almost nine years as traders dumped investments funded by
loans in Japan.
The yen rose against all currencies this week as turmoil in
credit markets and a global rout in corporate bonds and stocks prompted an
exodus from so-called carry trades. The Japanese currency had its steepest
advance in more than three decades versus the New Zealand dollar, a favorite for
such trades.

http://www.bloomberg.com/apps/news?pid=20601101&refer=japan&sid=arDchnf7ZG88

Labels: carry trade, unwind, yen