Reported 2 months ago
Investors are bracing for continued volatility in financial markets due to the aftershocks of a significant carry trade unwind, triggered by a surprise Bank of Japan rate hike and rising US unemployment rates. As traders exit yen-funded investments, concerns grow over the potential for further market disruption, especially among those hedge funds heavily affected by currency fluctuations. Despite some recovery in indices like the Nasdaq and S&P 500, analysts warn that large positions still need to be unwound, which could prolong the current market rout.
Source: YAHOO