Reported about 1 year ago
JPMorgan Chase & Co. predicts that currency carry trades could become less attractive in the future as volatility increases and the Federal Reserve turns dovish. Analysts highlighted significant losses in carry trade baskets recently, especially in Group-of-10 currencies. They mentioned concerns over potential losses if U.S. inflation softens and the Fed adopts a more dovish stance. Traders are seeking new sources of returns amid heightened volatility post-elections across various markets. Despite this, short-term gains may still be possible if uncertainties in emerging markets settle down and U.S. data surprises positively.
Source: YAHOO