These are dangerous times.
The pound just dropped 150 bp, Euro dropped 50 bp, and even the Swissie dropped 50 bp in interest rates yesterday. This may cause some unwinding of institutional carry trades, and increased volatility.
One of the reasons why I got out of my trades yesterday with a small profit instead of letting it ride. And I'm sitting back on the sidelines again.
ECB and BoE: Thursday Morning Rate Cuts!
It looks like Australia and New Zealand is the place to be now for some + swap carries.