Carry trade doesn't just affect underlying currencies. It's impact is witnessed in gold, commodities, stocks, etc. These assets are financed in low interest rate yen. Here's an excerpt from a report that I was reading..keep a very close watch upon this cross. It has been, it is, and
it shall be the coincident signal for so many other
markets. If the cross weakens, look for stocks to
weaken. If the cross weakens, look for gold to weaken,
and if the cross weakens… Well, if the cross weakens,
just be on guard!
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