JPMorgan: Still bullish on global carry trades despite pullback

JPMorgan said that despite the recent market pullback, it remains bullish on global FX carry trades, supported by solid growth prospects. Strategists including Anthony Deller wrote that global and emerging-market carry portfolios have retreated from mid-September highs, but the pullback appears excessive relative to the fundamentals reflected in rates markets. Even so, "we remain inclined to be bullish on global FX carry," as economic growth is expected to stay solid. "Further selloff in US short-term rates remains a risk."