Dollar Carry Trade & Market (Roubini on CNBC)

The dollar carry trade has been burning bright. What if the US dollar corrects at some point?

Prof Roubini recently spoke on CNBC about the general state of the US economy and implications of the dollar carry trade unwinding to the markets pricing in a V-shaped recovery.


My own investigations in chart trending led me to some interesting findings (in relation to the dollar reversal). I used the S&P500 and China A-share (ishares FXI) to proxy equities, and also looked at USD (dollar futures DXc) and Gold (GCc futures). Without explaining in detail the Elliott Wave pattern (& Fibonacci retracements) employed, it does seem that the dollar rally is almost certain to occur but a matter of time. Stocks may crash and interestingly, gold doesn't look to outperform (unless it hits 1330s before trending down). Purely from a technician perspective.