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2025-10-29 17:59:14
[The Era of High-Stakes Forex Trading Has Arrived! Carry Trade Frenzy Disrupts Traditional Patterns] ⑴ This year's forex trends may intensify further, with more funds flowing into carry trades or euro assets. ⑵ The market exhibited strong speculative intent in 2025, significantly boosting the valuations of many risk assets. ⑶ Declining confidence in global reserve currencies supported the euro's performance, with the trade-weighted euro index continuing to strengthen. ⑷ The euro jumped from a February low of 1.0125 against the dollar to a high of 1.1918 last month, a gain of nearly 1800 points. ⑸ Although the exchange rate stalled before the key 1.20 level, the euro still hit a record high against the yen. ⑹ Carry trade performance was astonishing, with high-yield emerging market currencies rising far more than interest rate yields themselves. ⑺ Safe-haven currencies like the dollar and yen, which should have benefited from trade turmoil, instead fell sharply. ⑻ Selling traditional safe-haven currencies to fund carry trades became a significant factor driving their decline. (9) Increasing investment during trade disputes, which are generally unfavorable for arbitrage, is tantamount to extreme market gamble. (10) The continued boom in US stocks and the rebound in gold and Bitcoin after a slight correction have further fueled the speculative frenzy.
