- Analytics
- News and Tools
- Market News
- Currencies with the highest interest rate levels are going to suffer most – Commerzbank
Currencies with the highest interest rate levels are going to suffer most – Commerzbank
Has 2023 been the golden year for carry trades? Economists at Commerzbank analyze the performance of the carry strategy.
2023 was rather disappointing from the carry traders’ point of view
2023 was rather disappointing from the carry traders’ point of view. The development of exchange rates did not provide any performance. High-yielding currencies did not appreciate against low-yielding currencies. The performance resulted exclusively from the rate advantage.
I don’t know any carry traders who would rely on this strategy merely because of the rate advantage. Expected exchange rate gains are always the most important argument. That means that carry trades did not work as expected in 2023.
However, I agree with the competition that 2024 will probably not provide a good carry trade performance. If central banks on the whole will cut interest rates again, principally those central banks will be the most aggressive who were in the biggest rush on the way up too. That means currencies with the highest interest rate levels are going to suffer the most.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.
Bank transfers
