Carry Trade Unwinding

Ugly looking candle today. Looks the reason is EUR/JPY carry trade unwind, probably as a result of European debt problems.

Chart 1. S&P 500

Source: StockCharts.com

Chart 2. Euro vs. Japanese Yen

Source: FT.com

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This entry was posted on Thursday, May 6th, 2010 at 1:52 pm and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

 

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