The rapid unwind of carry trades on February 27 is still on the mind of many traders and some of us are concerned that something like that may happen again in the near future. Last February, traders blamed a sell-off in the Chinese stock market for the unexpected unwind of carry trades but no one dares to discuss what will be the trigger for the next unwind.
I would like to challenge the visitors of this forum to come up with possible events that have the potential to trigger a significant unwind of carry trades.
Articles of Interest
How Much Longer Can Carry Trades Last?
http://www.dailyfx.com/story/special...836279143.html
Chances for a Carry Trade Unwind in 2007
http://www.dailyfx.com/story/special...535045623.html