Hedge Funds Turn Bullish on Yen After Carry Trade Blow-Up
- Leveraged funds hold contracts tied to bets on yen gains: CFTC
- They previously held a net position tied to losses in yen
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Hedge funds turned bullish on Japan’s currency for the first time since 2021 after sharp swings in foreign-exchange markets led to a blow-up of a popular yen trade.
Speculative traders are, on net, positioning for gains in the yen, according to the latest Commodity Futures Trading Commission data, which covers the week ending Aug. 13. This marks a sharp turnaround from the extremely negative sentiment seen among these traders as recently as early July.