Carry trade: Profit-taking risk builds into H2 – BNY

💡 DMK Insight

The iFlow Carry index flipping negative is a red flag for traders: profit-taking is kicking in. With SOL currently at $89.05, this trend in high-yield currencies could signal a broader risk-off sentiment. If investors are pulling back from riskier assets, SOL might face downward pressure, especially if it breaks below key support levels. Watch for SOL to hold above $85; a drop below could trigger further selling. On the flip side, if SOL can maintain its position, it might attract bargain hunters looking for a rebound. Keep an eye on the correlation with high-yield currencies—if they continue to struggle, SOL could follow suit. This is a crucial moment for traders to reassess their positions and consider hedging against potential volatility in the coming days.