A potential unwinding of the Yen carry trade could roil markets – Charles Schwab

FXStreet Insights Team FXStreet

Central bank policies are set to diverge from the steady hikes characterizing the first half of 2023, contributing to increased market volatility for the remainder of the year, economists at Charles Schwab report.

More volatility in currencies, interest rates and stocks

In the second half of the year, central bank policy is diverging from the steady pace of hikes seen in the first half of the year.

Perhaps most significantly, a potential unwinding of the Yen carry trade could roil markets.

These shifts could mean more volatility in currencies, interest rates and stocks than seen in the first half of the year.

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FXStreet Insights Team

FXStreet

The FXStreet Insights Team is a group of journalists that handpicks selected market observations published by renowned experts. The content includes notes by commercial as well as additional insights by internal and external analysts.

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