The Thanksgiving Carry Trade...Or, How I've Been Short the EUR/USD All Week and I'm Too Lazy to Stop Now

[Well, Murphy's Law kicked in and it's up over 1.2900 today, taking my stops with it...so no Thanksgiving carry trade after all. This trade turned out to be quite a turkey.]

For the past week or thereabouts I've been sitting on a short EUR/USD position that has been possibly the most boring trade I've ever had the displeasure to make. A week ago the pair was hovering around 1.2820 and aside from a 30 pip run up in the last couple hours it's been doing the same thing this week. Tomorrow I won't be surprised if it's back somewhere between 1.2820 and 1.2830. Since I'm not expecting a lot of volatility over the Thanksgiving holiday and weekend - especially considering the tedious and annoying lack of volatility lately - I think I'll end up just holding this interest-positive position until next week and make a few dollars from the holiday carry trade. Unless of course I wake up tomorrow and suddenly the EUR/USD is above 1.2900 and heading higher, in which case please disregard everything I just wrote. (By the way, I'm not recommending the EUR/USD for carry trades, it's just what I happen to be trading these days - there are far more lucrative pairs out there, like the GBP/JPY.)

Speaking of holidays, I'm curious if the November-December holiday corridor is an especially good time for carry trades because of its relatively lower volatility. Something I'll have to do more research on.

Happy Thanksgiving fellow traders - hope your current trade's not a turkey!

Related topics:
Learning about carry trades
The Economist covers carry trading