Carry Trades Rebound Thanks to Dow Rally but Losses Are Still Steep

Even though carry trades have rebounded on the back of the sharp rally in the Dow, the recent wave of risk aversion in the markets makes the latest recovery vulnerable to renewed losses. Japanese retail sales are due for release tonight. Sales are expected to improve but weak wage growth could limit the rise.

The corporate service price index was released last night. Unimpressive numbers have not affected the Japanese Yen.