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Yen strength won't unravel the carry trade: JPMorgan

Source: youtube.com

Currency & FXDerivatives & VolatilityArtificial IntelligenceInvestor Sentiment & PositioningMacroeconomic Data
Yen strength won't unravel the carry trade: JPMorgan

JPMorgan's Arindam Sandilya said yen appreciation alone is unlikely to force a broad unwind of global carry trades, as investors have diversified funding toward other low-yielding currencies. He identified a deflationary shock—potentially caused by a premature end to the AI investment cycle—as the more significant risk to leveraged global positioning and risk assets.

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