# EUR/USD defies gravity on relentless unwind of the carry trade - Forex Crunch

> EUR/USD climbed to a high of 1.1165 on 2 March 2020 as the carry trade continued to unwind and emerging markets sold off. US Treasury yields hit record lows and net euro short positioning was at a nine-month low before the squeeze.

- Date: 2020-03-02 · published 2020-03-02T12:00:00.000Z
- Category: macro · region Global · magnitude low
- Page: https://feedsoft.ai/events/6186-eur-usd-defies-gravity-on-relentless-unwind-of-the-carry-trade-forex-crunch
- Commodities: [Euro (USD per EUR)](https://feedsoft.ai/c/EURUSD.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Record-low US yields and dollar weakness reduce the dollar's yield advantage, which can support commodity prices and weigh on emerging-market currencies that affect feed import costs.

## Read by commodity

- DXY: bearish ▼
- EURUSD: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| EURUSD | 2020-03-02 | 1 | +1.5% | 5.4 | Describes the 2 March EUR/USD jump to 1.1165 as carry trades unwound, Treasury yields hit record lows and a short squeeze hit euro shorts that were at a nine-month low, which directly explains the one-day move. |
| EURUSD | 2020-03-06 | 5 | +2.9% | 4.4 | Carry trade unwind and a short squeeze from a nine-month-low net euro short position pushed EUR/USD to 1.1165 on 2 March, a key leg of the 5-day move. |
| DXY | 2020-03-02 | 1 | -0.7% | -4.4 | Carry trade unwinding and record-low Treasury yields pushed EUR/USD higher on 2 March, weighing on the broad dollar. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| EURUSD | 2020-02-28 | [EUR/USD: Central banks to favor the euro - Forex Crunch](https://feedsoft.ai/events/54804-eur-usd-central-banks-to-favor-the-euro-forex-crunch.md) | +2.0% | +0.4% |
| EURUSD | 2018-09-30 | [DXY to come off: we like to buy into any dip below 1.1550 in EUR/USD - Nordea - Forex Crunch](https://feedsoft.ai/events/63254-dxy-to-come-off-we-like-to-buy-into-any-dip-below-1-1550-in-eur-usd-nordea.md) | -1.0% | -2.0% |
| EURUSD | 2022-01-31 | [Euro Jumps Ahead of EU GDP and German CPI as US Dollar Pauses. Where to for EUR/USD? \| Forex trading, free forex education \| Forex.ca](https://feedsoft.ai/events/43342-euro-jumps-ahead-of-eu-gdp-and-german-cpi-as-us-dollar-pauses-where-to-for-eur.md) | +2.6% | +0.6% |
| EURUSD | 2020-08-28 | [Euro (EUR USD) Revives Global Challenge for the Dollar’s Currency Crown - Bloomberg](https://feedsoft.ai/events/51823-euro-eur-usd-revives-global-challenge-for-the-dollar-s-currency-crown-bloomberg.md) | +0.1% | -1.7% |
| EURUSD | 2022-03-10 | [Best day in 5-years for EUR/USD ahead of the March ECB meeting](https://feedsoft.ai/events/9525-best-day-in-5-years-for-eur-usd-ahead-of-the-march-ecb-meeting.md) | -0.7% | -1.4% |
| DXY | 2020-02-28 | [EUR/USD: Central banks to favor the euro - Forex Crunch](https://feedsoft.ai/events/54804-eur-usd-central-banks-to-favor-the-euro-forex-crunch.md) | -0.5% | +4.3% |
| DXY | 2017-01-31 | [Trump Trouble: USD/JPY remains on the back foot - Forex Crunch](https://feedsoft.ai/events/73229-trump-trouble-usd-jpy-remains-on-the-back-foot-forex-crunch.md) | -0.6% | -0.6% |
| DXY | 2024-08-08 | [Fed easing bets, carry trade unwind turn analysts bullish on Asian currencies \| Reuters](https://feedsoft.ai/events/29076-fed-easing-bets-carry-trade-unwind-turn-analysts-bullish-on-asian-currencies.md) | -0.9% | -0.9% |

## Sources

- forexcrunch.com: https://www.forexcrunch.com/blog/2020/03/02/eur-usd-defies-gravity-on-relentless-unwind-of-the-carry-trade/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.