For the first time in 2026, iFlow Carry has turned negatively significant, highlighting a continued unwinding of carry trades, according to FX Street. This shift points to a potential contrarian opportunity for traders as market positioning adjusts.
Geoff Yu from BNY has noted this change as a key indicator of evolving FX market flows, reflecting a cautious stance among investors towards carry trade strategies. The move suggests that investors may be reducing exposure to traditional carry trade pairs amid shifting global financial conditions.
Given Japan’s prominent role in global FX markets and its historically low interest rates, this development could influence yen-related carry trades and broader market sentiment among Japanese investors.