- Barclays said foreign-exchange market instability may persist because of a stronger U.S. dollar and rising interest-rate volatility.
- Barclays said higher volatility in G10 currencies and broader foreign-exchange swings are likely to weigh on carry trades.
- Barclays said global carry trades offer limited investment appeal and warned of a possible repricing of emerging-market currencies, urging caution on chasing beaten-down high-yielding currencies.
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Barclays warned that turbulence in foreign-exchange markets may persist as the U.S. dollar strengthens and interest-rate volatility rises.
Bloomberg reported on October 27 that Barclays strategists Marek Raczko and Leonardo Cremonini wrote in a report that volatility in Group-of-10 currencies will increase and remain elevated.
Barclays said realized…
