Another strong day in the Dow has helped to take carry trades higher. Risk appetite has returned to the market following the Bush Administration’s plan to give relief to subprime homeowners. According to President Bush close to 2 million homeowners will be able to take advantage of a five year mortgage rate freeze. Risk appetite however can turn on a dime so watch out for payrolls tomorrow because if it is bad, stocks may reverse quickly, taking carry trades lower as well. Japanese GDP is due for release this evening, but these are final numbers which means that they will not be market moving.