Markets kicked off the week on a mixed note. Asian tech stocks followed Wall Street higher on renewed excitement around OpenAI and the race toward AGI, while European equities struggled under the weight of rising energy prices, weak German industrial production and expectations of an ECB rate hike.
The major focus however was the sharp rise in the Japanese yen and the rising risk of a carry unwind. Years of cheap Japanese funding encouraged investors to borrow in yen and pile into higher-yielding assets, pushing classic carry pairs such as AUD/JPY to extreme levels. But today, with the Bank of Japan potentially turning more hawkish, those trades could become increasingly vulnerable.
Watch the full episode to find out more!
Intro0:41 Market update
1:49 Yen rises sharply
2:42 What happens if traders unwind yen carry positions?
7:09 AUD – new proxy for copper?
#Markets #Yen #CarryTrade #USDJPY #AUDJPY #BankOfJapan #ECB #InterestRates #Stocks #Bonds #Investing #MarketOutlook #Trading #Swissquote #MarketTalk









