GBP/JPY and AUD/JPY are seeing an influx of carry trades as fears of a hard landing diminish. Carry traders are favoring these currency pairs due to their strong performance in the foreign exchange market. The GBP/JPY and AUD/JPY pairs are attracting investors seeking opportunities for profit through interest rate differentials.
The GBP/JPY pair involves the British pound and the Japanese yen, while the AUD/JPY pair involves the Australian dollar and the Japanese yen. Both pairs are considered outperformers in the FX market, making them attractive choices for carry trades.
As concerns about a hard landing lessen, investors are more willing to take on higher-yielding assets, such as the GBP/JPY and AUD/JPY pairs. Carry trades involve borrowing in a low-interest rate currency and investing in a higher-yielding currency, profiting from the interest rate differential.
Overall, the GBP/JPY and AUD/JPY pairs are benefiting from the improving market sentiment and are likely to continue attracting carry trades in the near future.