GBP/JPY and AUD/JPY have become popular choices for carry trades as concerns about a hard landing in the global economy diminish. Carry trades involve borrowing in a low-interest rate currency, such as the Japanese yen, and investing in higher-yielding assets like the British pound or Australian dollar.
The British pound and Australian dollar have been outperforming other currencies, attracting investors looking for higher returns. The GBP/JPY and AUD/JPY pairs have seen increased interest as a result.
The decrease in hard landing risks has boosted confidence in these currencies, making them more attractive for carry trades. Investors are flocking to these pairs in search of profits.
Overall, GBP/JPY and AUD/JPY have emerged as the top choices for carry trades as they offer the potential for higher returns with reduced risks of a hard landing in the global economy.