True, But Is It Predictive?

The NZDJPY carry trade one month ago was an attempt to make 6.75%.

Today it is still an attempt to make 6.75% (this will change as RBNZ is expected to hike this week) but it is now 5-6% cheaper to put the trade on, in a manner of speaking or if you prefer 5-6% less risky.

At some point this action makes the trade appealing once again. Maybe now maybe not but still...

While I clearly have respect for the consequences of a stronger yen, the yen is still below 1% interest rate and a few countries are still yielding 6% and up.