Do you recommend this strategy in the Asia-Pacific forex markets -- Singapore, HK, Japan, Australia & NZ?

Answer
No, I don't trade news stories, nor do I trade with a leverage of more than 1:50

The reason is simple: Broker spreads increase dramatically when a news report comes out. So the chances of manipulation & 'price spikes' are much higher.

Besides, the market itself goes into a volatile whipsaw at news time. Your stops can be taken out, trends takes a U-turn, and more often than not, you'll end up with unwanted losses.

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How do you perform a Carry Trade?

Could someone recommend a good book to me on carry trades in forex? Thank you for your consideration.
I was refering to holding a EURO/USD + UDS/CHF. But thanks, that is a new idea.

Answer
A Carry Trade is borrowing in one currency with VERY LOW interest rates, and investing that in a currency with higher interest rates.

The most popular was the YEN carry trade. For long time the Bank of Japan had the YEN at 0% interest rates. You could borrow and then drop it in Euro's or Dollars at 4-5% interest. You could also invest in stocks as well.

The truth is, the rates have to be very low to make money because you have to pay for the foreign exchanges. Remember you have to change from YEN to ESD or EURO. Then buy your bonds/stocks/CD's.

Then you have to change that money back from YEN to EURO/USD.

I currently don't believe there is enough of a differential between the EURO and the USD to make a carry trade worthwhile.

Also, if either currency moves and the interest rate moves quite a bit, you will find yourself screwed in a very bad way.