Currencies

FX Markets Navigate Low Volatility: Carry Trades and the Strong Dollar

In a phase of low volatility, FX markets see a surge in carry trade strategies, especially with the yen and emerging market currencies. The U.S. dollar remains strong, while the Mexican peso and Turkish lira outperform in emerging markets. Investors remain watchful of events that could disrupt market stability, including a U.S. Treasury auction, Moody's rating downgrade, and U.S. CPI revisions.