0913 GMT - The Japanese yen faces further underperformance as low volatility in foreign-exchange markets increases demand for carry trades, MUFG Bank's Derek Halpenny says in a note. Carry trades involve investors borrowing in low-yielding currencies to invest in ones with higher yields. "Even after another negative U.S. nonfarm payrolls print last Friday, the appetite for risk remains solid, helping to depress broader G-10 FX volatility," Halpenny says. With FX volatility set to remain incredibly low, the outlook for carry remains attractive, he says. The dollar trades flat at 159.34 yen after reaching an 11-day high of 159.37 earlier, according to LSEG.
At the request of the copyright holder, you need to log in to view this content
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.