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📊💱Carry Factor Rebounds And Leads In September: Cable FX Macro

Writer's picture: Rosbel DuránRosbel Durán

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  • The factor that exploits the divergence between high-yielding and low-yielding currencies was underperforming at the beginning of the month, while momentum outperformed

  • The carry basket was short franc and the Swedish króna, it targeted antipodes. This mix finished September up 0.8% on a last minute comeback

  • The worst performing factor was spread, September recorded the basket's largest decline this year. Momentum, volatility and the composite finished higher. The latter rebounded from losses in August

  • For October, the model is adjusting the carry factor, it now holds the same targets, but it is looking at the JPY and CHF as funding currencies


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