The increasing likelihood of the Fed cutting rates by 50bps this September together with BoJ shift away from zero rates will aggravate the unwinding of the carry trade.
Everyone who borrowed cheap JPY and bought into a market that kept going up… their losses are amplified by a surging yen and a dropping US market. The panic is already showing in the $Cboe Volatility Index(VIX)$.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
Comments