Carry Trades Rally as Dow Hits New Record High Intraday

Japanese Yen crosses have performed extremely well with the Dow hitting a new record high on an intraday basis. The stronger US number has helped to alleviate some concerns that the US economy could fall into a recession and now that the risk is eradicated for the time being, traders are a bit more willing to take on risk.

On Wednesday, the Bank of Japan begins their 2 day interest rate meeting. Rates are not expected to be changed, which should make the announcement a non-event. Japanese markets are closed Monday.
[B]Written by Kathy Lien, Chief Currency Strategist for[/B]