Question
list 5 high interest rate currencies and 5 low interest rate currencies. You must match them up into pairs (for example: USD/GDP or NZD/SEK, etc).
list 5 high interest rate currencies and 5 low interest rate currencies. You must match them up into pairs (for example: USD/GDP or NZD/SEK, etc). If necessary, edit your posting to reflect a total of 5 pairings. You must also give justification for the pairings. These can be based on economic data, government policy, technical analysis, or market sentiment. You must also give references for your information.
Simply put, a carry trade is the act of borrowing money in a low interest rate country (i.e. Japan) and using those funds to purchase the government bonds of a highly rated, high yield country (i.e. Australia). At some point in time you would sell the bond, repay the loan, and keep the difference thereby earning a risk-free profit (a free lunch as it is called in the financial industry).
list 5 high interest rate currencies and 5 low interest rate currencies. You must match them up into pairs (for example: USD/GDP or NZD/SEK, etc). If necessary, edit your posting to reflect a total of 5 pairings. You must also give justification for the pairings. These can be based on economic data, government policy, technical analysis, or market sentiment. You must also give references for your information.
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