Carry Trade and the Forex Trading Forecast

April 15, 2009 by Trader Rich

When will the carry trade resume?

One of the questions that many are asking with regard to the forex trading forecast is this one: When will the carry trade resume?

The carry trade is one of the most popular types of trades overall, but it is risky. In the current environment of risk aversion — due in large part to a slowing global economy — the risky carry trade has fallen out of favor. Today’s release of U.S. consumer prices data hasn’t helped.

But there is an argument that the carry trade could be on the verge of resuming its place. With the economy expected to start to recover at some point in the relatively near future, there is speculation that the forex trading forecast will see a return to the yen carry trade.