Carry trade rejuvenated
If the ECB adopts a quantitative easing policy and enters a negative deposit rate scenario, high carry trade currencies that react positively to risk appetite, like the Aussie, are expected to react strongly. Societe Generale global head of research Patrick Legland says the euro against the Aussie and Norwegian Krone are key pairs to benefit, given Australia and Norway are the only two G10 economies where the inflation rate is at least at their respective central banks' targets.
Read more: http://www.smh.com.au/business/marke...#ixzz33lrfuaDp
If the ECB adopts a quantitative easing policy and enters a negative deposit rate scenario, high carry trade currencies that react positively to risk appetite, like the Aussie, are expected to react strongly. Societe Generale global head of research Patrick Legland says the euro against the Aussie and Norwegian Krone are key pairs to benefit, given Australia and Norway are the only two G10 economies where the inflation rate is at least at their respective central banks' targets.
Read more: http://www.smh.com.au/business/marke...#ixzz33lrfuaDp