Analysis-Investors set sights on Swiss franc for popular carry trades after yen intervention
Hedge funds increased franc short positions to a near two-month high as Swiss rates stayed near zero and yen intervention risk rose, CFTC data showed.
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8 Articles
Carry Traders Pivot to Swiss Franc After Yen Volatility Spikes
Carry traders are increasingly turning to the Swiss franc in the near term for their source of funding as the threat of intervention and higher interest rates saps the appeal of borrowing in the yen.
With zero rates and the willingness of the SNB to limit any appreciation, the Swiss currency is gaining in attraction against the Japanese yen.This increased use is lowering its price, but exposes the franc to a sharp increase in the event of tensionsThe Swiss franc is increasingly used by investors to finance their carry trade operations, according to figures from the CFTC, the US agency responsible for regulating trade in raw materials and cur…
Analysis-Investors set sights on Swiss franc for popular carry trades after yen intervention
By Alun John and Dhara Ranasinghe LONDON, Aug 19 (Reuters) - A weaker Swiss franc could be an unexpected consequence of recent rare U.S.-Japanese intervention to prop up the yen, bringing relief to companies and policymakers in Switzerland who have gra...
According to current data and expert statements, professional investors are increasingly using the franc instead of the yen for their carry trades. The post franc is becoming the new currency for the Carry Trade appeared first on financemarktwelt.de.
Traders eye Swiss franc as yen intervention reshapes carry trade
Hedge fund investors are beginning to look beyond the Japanese yen for funding currencies in carry trades, with the Swiss franc emerging as a potential beneficiary of recent intervention in the foreign exchange market, according to a report by Reuters. The shift follows rare US-Japanese efforts to support the yen, which have increased the risk for investors betting on a weaker Japanese currency. The yen has traditionally been one of the preferre…
The U.S. intervention to prop up the Japanese yen was not only “inefficient,” but could even have been “counterproductive,” according to George Saravelos, Deutsche Bank's strategist. The analyst argues that the Japanese currency would probably have been strengthened more without Washington's intervention. In his view, the operation raised the threshold for Japan to act again and left signs that the U.S. is not willing to commit resources signifi…
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