Saturday, 21 July 2007
Carry trades pressured
Late friday saw some fightback from the yen, with long black candles across all the yen pairs. Its looking like a good place to start gridding in from. Crisis=opportunity!
Carry trades were pressured to a degree as positve equity markets turned
negative. The DOW, which had been up 90 points early in the session reversed
course all the way to -130 by 10.45AM.The GBP/JPY, which had been as high as
251.07 dropped to a low of 248.6 as USD/JPY approached 121.0The fall in equites
was mirrored by world-wide falling bond yeilds as traders apparently fled stocks
for safer investments. Yeild on the US 10y lost nearly 10 basis points to 4.95.
Some of today's movement was attributed to sub-prime difficulties, but
disapointing earnings from Google, Catepillar and Microsoft also weighed.
Labels: carry trade, pressure
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