Carry Trades Still Struggling
Since the beginning of the month, the Yen crosses have been trapped within a wide trading range, making it frustrating and difficult for anyone still long carry.
In fact, the only carry trade currency that is trading at a level higher than it began this month is AUD/JPY. Volatility in the financial markets continues to be very high, which has made it very difficult for carry trades to recover. We believe that this will remain true until we see some stability in the US economy.