As the recession has taken hold, short-term U.S. interest rates have been pushed down to .25% or lower. This encourages those who want to borrow to do so in U.S. dollars, which is exactly how the low Japanese interest rates of the past boom cycle encouraged borrowing in yen. But markets can move fast when they head down, and when a carry trade unwinds, few things move faster.
Conventional assumptions about market drivers don't work – despite what you hear on the six-o'clock news. In fact, if there is one central point in the Elliott wave-based view of the financial markets (and the society at large), it is precisely this: Events outside the markets have NO trend-forming influence. Don't believe us? Explain this, then...
Announcing EWI's New eBook ...
In this exciting new 45-page eBook, Jeffrey Kennedy shows you – using fresh, real-life market examples – how you can use simple, yet powerful, chart reading techniques to improve your trading.
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