My points:”I believe that short-term fluctuations may have reached a bottom, there could still be similar volatility in the medium to long term. This is especially true given the Federal Reserve's expected interest rate cuts and the Bank of Japan's gradual approach to raising interest rates.However, the current interest rate of 0.25% by the Bank of Japan remains the lowest globally, and they have indicated a slow path towards increasing rates. It is reasonable to expect that there will be further yen carry trade closures and associated market pressures in the future.Perhaps in similar situations, we might not need to panic and rush to sell or short-sell; it could also be a good opportunity to buy on dips.The market performance in recent days has precisely illustrated this point. It suggest
Carry Trade Dispute: Will Yen Keep Swaying Global Markets?
Global stock markets experienced a "Black Monday," wiping out over $6 trillion in market value. The current market focus is on whether the "unwinding of yen carry trades" that triggered this sell-off has come to an end. On this issue, Wall Street analysts are divided. Goldman Sachs and Société Générale believe that the unwinding of yen carry trades is nearing its "end." Meanwhile, JPMorgan, UBS, and Scotiabank hold a different view, asserting that the "pain" of unwinding carry trades is not yet over.
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