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Goldman, JPMorgan See Euro Challenging Yen as Carry-Trade Funder
Looming European interest-rate cuts have set the euro up as a prime candidate for funding carry trades, adding further pressure on the common currency. Goldman Sachs Group Inc. and JPMorgan Chase & Co. are recommending borrowing the euro to buy riskier, higher-yielding currencies. Money managers at Allspring Global Investments and Ninety One Asset Management favor the trade against emerging-market currencies, while Allspring is also betting the euro will fall against the US dollar. Those convictions got a boost this week as European Central Bank President Christine Lagarde ended up opening the door to earlier ... (full story)