For one of the most popular trading strategies in the $5.1 trillion-a-day currency market, the past year has been difficult and the prospect of respite any time soon seems remote.
Carry trades, or borrowing where interest rates are low and investing the proceeds where they’re higher, are set for a fourth straight quarter of losses despite the relative calm of foreign-exchange rates over the past three months. For analysts, the potential for rising volatility amid escalating global trade tensions suggests there’s little hope of a turnaround on the horizon.
