I was on the Business News Network talking about the implications of the EU/IMF bailout package for Greece. Click on the image to access the video:

Posted in Canadian Dollar, Carry Trades, Forex TV, forex blog 17 Comments »

Carry trades use to be one of the most popular trading strategies for retail forex traders, but in the past year, that has changed significantly. The Japanese have always been the biggest buyers of carry trades but having been burned significantly, they are finally starting to cut their losses. According to the latest [...]

Posted in Carry Trades, GBPJPY, Japanese Yen, forex blog 5 Comments »

We all know that Japanese traders have been obsessed with the carry trade. However given the more than 30 percent decline in many of the Yen crosses last year, many people may be wondering how many Japanese carry traders are still in the game. Can these traders still remain committed to their [...]

Posted in Carry Trades, EURJPY, Forex Technicals, Japanese Yen, forex blog, japanese retail positioning 1 Comment »

On Tuesday, we talked about how volatility in the forex market has exploded in 2008. Although trading ranges expanded significantly in October and November, volatility has contracted since the beginning of the month.
The following chart from Bloomberg illustrates how far 3 month volatility for the EUR/USD has fallen since hitting a record [...]

Posted in Carry Trades, Forex, Forex News, Forex Technicals, currency trading ranges, forex blog, usd/jpy 2 Comments »

We are inching closer to a formal bailout plan for the Big 3 automakers and as previously suggested, regardless of the final outcome, the markets will cheer an end to the drawn out drama. The rally in equities this morning have driven major currencies higher against the US dollar and Japanese Yen, but it [...]

Posted in Carry Trades, Fed Rate Cut, Fed Rate Cut Expectations, Forex News, Forex Technicals, US Dollar, US Economy, forex blog, retail sales, usd/jpy, zero interest rates No Comments »