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Currency Traders Can’t Lose as Strategies Reap Big Gains

  • Carry trade leads while valuation and momentum also rally
  • Still-cheap yen helps trades along with Aussie, kiwi yields
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The Minimal Significance of a Fed Rate Hike on FX

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Everyone’s a winner in the $5.3 trillion-a-day global currency market this year.

For just the second time in the past decade, three major foreign-exchange trading strategies are all producing positive returns. The carry trade, in which investors borrow in Group of 10 currencies with low interest rates and use the proceeds to buy assets with higher yields, is on pace for its biggest annual gain since 2012, according to Deutsche Bank AG index data. Trades that buy undervalued currencies and sell expensive ones, and tactics that latch onto foreign-exchange trends, are also making money.