Japanese Yen: Carry Trades Refuse to Die

[B]Japanese Yen carry trades were the focus of the day. Many times in the past, carry trades have refused to die despite minor hiccups which explain why we are wary of whether this will happen again. [/B]

[B]The US stock markets have already recuperated some of its losses and we have key Japanese data due for release tonight, namely industrial production and the Bank of Japan meeting minutes. Overnight, economic data from Japan was very strong with the jobless rate falling below 4 percent for the first time in 9 years. Overall household spending was also robust which suggests that we may finally be seeing some recovery in the Japanese economy. [/B][B][/B]