If China does raise rates, wouldn't the USD/CNY become the ultimate carry trade? Since the yuan is pegged to the dollar, there is no downside risk and if it were to become unpegged, the dollar would lose value compared to the yuan. Please let me know if/why my thinking is off and it couldn't be this easy. Thank you.
*Is there a good place to find a currency pair interest calculator? I tried Oanda's, but it clearly doesn't work because it gave me the same return for being long and short the same pair.
*Is there a good place to find a currency pair interest calculator? I tried Oanda's, but it clearly doesn't work because it gave me the same return for being long and short the same pair.