They're blaming market volatility on Carry Trades...
(www.cnbc.com)
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Key Points:
A rapid unloading of “carry trades” extended on Monday, with market participants seeking to roll back on the popular trading strategy amid a dramatic global sell-off in risk assets.
Carry trades refer to operations wherein an investor borrows in a currency with low interest rates and reinvests the proceeds in higher-yielding assets elsewhere.
“You can’t unwind the biggest carry trade the world has ever seen without breaking a few heads. That is the impression markets give us this morning,” Kit Juckes, chief foreign exchange strategist at Societe Generale, said in a research note published Monday.
FYI "Carry Trades" were mentioned here 3 months ago after Japan's first dip: https://greatawakening.win/p/17t1W986CZ/april22024-why-you-should-care-a/c/