« DailyFX Forex Radio - US Dollar Rallies on Fed Warning - What Can We Expect from Bernanke Now? | Home | Forex Trading Expo Versus Currency Trading Expo »
Dow Hits Resistance, Carry Trades Could Continue to Weaken
By DailyFX Updates | September 3, 2007
For short or long carry traders, following the Dow has become a very important part of day to day analysis. Generally speaking, when the Dow is rallying, carry trades rally and vice versa because both are a measure of risk. However in scenarios like Friday where the Dow rallied and carry trades did not, it goes to show how weak demand may really be for the high yielding currency pairs. The fact that the Dow is sitting near significant resistance suggests that carry trades could resume their downtrend when traders return to the market tomorrow (Tuesday Sept 4)
Tags: carr, forex trading
Topics: DailyFX.com Updates |