Interest rate spread refers to the difference between the interest rates of domestic currency and foreign currency.

The so-called Sino-US interest rate differential refers to the US federal funds rate minus the Chinese interest rate.

As the global economy continues to grow and economic volatility is low, carry trades remain attractive to investors.

In many countries, the degree of monetary policy tightening is already high and economic growth is close to its potential growth rate, which means that interest rates in these countries are at neutral (equilibrium) levels, and carry trades can be realized through various

Arbitrage is carried out at the currency's neutral interest rate level and the interest rate difference is obtained.

At the same time, risks arising from interest rate changes are also limited to a smaller range.

Increased policy transparency also limits shocks caused by policy uncertainty.

As carry trades remain popular, high-yielding currencies such as the Australian dollar, New Zealand dollar and British pound will continue to strengthen.