On Friday, we said that the number one thing that Japanese Yen traders should focus on is the Dow.
Today’s move proves that equities continue to dictate the market’s appetite for carry. The sharp sell-off in the Dow reversed all of the earlier gains that carry trades and other high yielding currencies incurred during the early European trading session. The market will continue to ignore tonight’s reports on tertiary activity and leading indicators. A rebound in the Dow will determine whether we see a rebound in carry.
Written By kathy Lien, Chief Currency Strategist for dailyFx.com</p>