Foreign Exchange Markets Experience Unusual Calm Leading to Prolonged Lucrative Opportunities

Wednesday, 27 March 2024, 05:00

The unprecedented tranquility in foreign exchange markets is defying expectations and supporting the continuation of the profitable carry trade strategy. This strategy entails borrowing in a low interest-rate currency to invest in a higher-yielding currency, with major central banks previously anticipating its decline.
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Foreign Exchange Markets Experience Unusual Calm Leading to Prolonged Lucrative Opportunities

Sustained Lucrative Foreign Exchange Trade Amid Low Volatility

An unusual calm enveloping foreign exchange markets is extending the life of a lucrative trade beyond what many had expected. The so-called carry trade, which involves borrowing in a low interest-rate currency to invest in a higher-yielding currency, had been expected to fade as major central banks…


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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