Safe Haven | What's Up With The Markets: "Markets around the world are getting increasingly active - volatility is on the rise. Some of this volatility is due to the unwinding of certain carry trades. However, we think there is much more to come regarding the carry trades. These are the just the incipient murmurs.
The yen has been weak of late - suggesting that large positions have not yet been unwound. Such activity would put upward pressure on the yen. There are billions involved in the yen carry trade.
Nevertheless, this is only one side of the carry trade. Commodities are and have been on the other side. If commodity prices fall further, it will put even more pressure on the carry trades, and quite possibly from both sides"
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