Carry Traders Start Off 2010 With A Whimper
Following the crowd, and going long the Brazilian Real while shorting the Yen has had some disastrous results for carry traders: starting off 2010 with a 9.2% loss is never a good thing to show your boss.
(chart courtesy of Macro Man via CreditTrader)
In the mean time the dollar is back to August 2009 levels.
At what point will the carry'ers decide to throw in the towel and actually cover losing positions and book the losses? Look for some serious move in FX markets when that moment finally occurs.