Strauss - I don't believe it is the carry trade - but rather a flight from risk to safe haven. ie EUR now risk (was questionably relative safe haven) to USD now safehaven (also v questionable) - but that's the market.
Carry trade is traditionally when investors/large trading houses borrow money in one country at a low interest rate and invests it in another country at a higher rate. Therefore the country with cheap money has a low value v's the country with the higher yield has a higher value. This isn't the case with the EUR/USD. As US doesn't have high yields and EUR is too risky for carry trade now.
Here is an excellent article on what has been going on - carry trade has been in disarray somewhat since the GFC and now since the EU crisis and decline in the AUD.
IMHO GBP an possible alternative to EUR IMHO from carry trade unwind from AUD/NZD etc
Australia’s rate cut imperils carry trade
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