Weekend funding rates on US dollar
Key points
- Overnight funding rate strategies aim to capitalize on positive interest rate differentials
- Weekend funding rate for USD/JPY is currently 6.46 pips
- Potential profits are also subject to price action and admin fees
Overnight funding rates in the US are currently at 5.5%. This can set up large rate differentials against countries like Japan with negative rates. Theoretically, going long USD/JPY can create profit as a result of this differential. However, price action in volatile pairs can outweigh even large funding rates.
Weekend funding rates for long USD positions
- USD/JPY: 6.46
- EUR/USD: 1.20
- USD/CHF: 2.43
- USD/SEK: 7.86
- USD/NOK: 5.50
- USD/HKD: 9.43
- USD/SGD: 1.37
Values are denominated in pips of the quote currency. Indicative values from 8/23/23
How to trade forex using the carry trade
- Choose the forex market with positive carry you’d like to trade
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions
Trading forex markets using the carry trade requires an account with a forex provider like tastyfx. Many traders watch major forex pairs like EUR/USD, GBP/USD, or USD/JPY for carry trade opportunities. You can help develop your forex trading strategies using resources like tastyfx’s Learn Center.
Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
