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Posted by EconMatters


With a team of analysts, we at EconMatters focus on identifying the fundamental theories of cause and effect in the financial markets that matters to your portfolio.

A Strong Dollar Isn`t Always Bad For Commodities (Video)

by EconMatters on January 26, 2017

in Commodities, Economy, Videos

By EconMatters


We discuss the day`s trading action in how the oil market is being carry traded up by some entity today, and illustrate the negative effects for gold, copper and the bond markets. Per the Investopedia source, here is the concept of Positive Carry explained for everyone:

What is a ‘Positive Carry’

A positive carry is a strategy of holding two offsetting positions, one of which creates an incoming cashflow that is greater than the obligations of the other.

BREAKING DOWN ‘Positive Carry’

Similar to arbitrage, positive carries generally occur in the currency market where interest paid to investors in one currency is more than they have to pay to borrow in another currency.

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