Alpha Circle Nsukka | Charts, Psychology & Market Discussions - Page 95

Carry trade demand continues to support higher-yielding currencies as investors borrow low-interest-rate Japanese yen to invest in currencies offering better returns, such as the USD, AUD, NZD, and GBP. The wide interest rate gap keeps these trades attractive, putting downward pressure on the yen and supporting higher-yielding currencies. However, increased market uncertainty or a shift in Bank of Japan policy could trigger a rapid unwinding of these positions, leading to a stronger yen and heightened FX market volatility.

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@youngancient - 3 months ago

Quoted - mitchei_1

Yeah

Thanks for the update I appreciate

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@youngancient - 3 months ago

Quoted - mitchei_1

Carry trade demand continues to support higher-yielding currencies as investors borrow low-interest-rate Japanese yen to invest in currencies offering better returns, such as the USD, AUD, NZD, and GBP. The wide interest rate gap keeps these trades attractive, putting downward pressure on the yen and supporting higher-yielding currencies. However, increased market uncertainty or a shift in Bank of Japan policy could trigger a rapid unwinding of these positions, leading to a stronger yen and heightened FX market volatility.

The main thing you should know is that Japan keeps interest rates near zero (or very low), so borrowing yen is "cheap"

Investors borrow yen, convert it to USD/AUD/NZD/GBP, and invest in assets offering higher yields (bonds, deposits, etc.)

They pocket the difference between what they pay to borrow yen and what they earn on the higher-yielding currency — this is the "carry"

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@mitchei_1 - 3 months ago

Quoted - youngancient

The main thing you should know is that Japan keeps interest rates near zero (or very low), so borrowing yen is "cheap"

Investors borrow yen, convert it to USD/AUD/NZD/GBP, and invest in assets offering higher yields (bonds, deposits, etc.)

They pocket the difference between what they pay to borrow yen and what they earn on the higher-yielding currency — this is the "carry"

Sharp

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@promisefx - 3 months ago

Gm traders

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@promisefx - 3 months ago

Another week to trade, more opportunities coming

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@promisefx - 3 months ago

I have slept on this trade

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@promisefx - 3 months ago

MACQUARIE SEES CHINA TAPPING OIL STOCKPILES

Macquarie said China's state-owned refiners could begin accessing commercial oil reserves from Q3 2026, supporting refining margins and benefiting Sinopec.

The firm also expects China to expand its tanker fleet to strengthen energy security, which could cap VLCC freight rates over time while boosting demand for new tanker construction.

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@promisefx - 3 months ago

The structure is just screaming sell sell sell

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