Christine Lagarde is likely to telegraph a rate hike at the upcoming ECB meeting, which would support the euro and weigh on European government bonds that have been underperforming under pressure.
Christine Lagarde is likely to telegraph a rate hike at the upcoming ECB meeting, which would support the euro and weigh on European government bonds that have been underperforming under pressure.
Higher-yielding emerging market energy producers are attractive for carry trades given lower volatility and stable interest rates. This trade is safe unless there is another flare-up in the Middle East.
Lower volatility and stable interest rates are making the FX carry trade attractive again. Investors should look at higher yielding emerging markets and energy producers to pick up yield, as these appear safe as long as there is no new flare-up in the Middle East.