Does anyone trade the USDHKD or investigated its potential as a carry trade?
At the moment the USDHKD is hovering near 7.75000, a support level defended by the HK central bank as the HKD is pegged to the USD, with 7.75000 being the lower level of this peg.
With the central bank defending 7.75000 and positive carry to go long, even if price goes nowhere, you’ll earn interest. The fact that the central bank is defending 7.75000 means you can also setup a very tight stop loss in the unlikely event that the peg disappears overnight.
