Goldman Sachs Group said that as one of the most commonly used strategies in the foreign exchange market with daily turnover of 9.5 trillion US dollars, arbitrage trading currently enjoys the best environment for more than 20 years. The bank's strategist Stuart Jenkins wrote in the report that within the G10 currency range, arbitrage trading is now almost more meaningful than at any other time since 2000. Goldman Sachs currently favors such transactions in the next few months using yen, the Swiss franc, or the euro as financing currency — borrowing lower-yielding currencies and investing in higher-yielding currencies. A number of factors have boosted the appeal of this type of deal. Goldman Sachs said that interest rates in the world's major developed economies have stabilized at various high levels, creating abnormally large yield differences for investors, while exchange rate volatility has fallen to historic lows. A J.P. Morgan Chase index shows that exchange rate volatility is hovering near its lowest level since 2020.

Goldman Sachs Group said that as one of the most commonly used strategies in the foreign exchange market with daily turnover of 9.5 trillion US dollars, arbitrage trading currently enjoys the best environment for more than 20 years. The bank's strategist Stuart Jenkins wrote in the report that within the G10 currency range, arbitrage trading is now almost more meaningful than at any other time since 2000. Goldman Sachs currently favors such transactions in the next few months using yen, the Swiss franc, or the euro as financing currency — borrowing lower-yielding currencies and investing in higher-yielding currencies. A number of factors have boosted the appeal of this type of deal. Goldman Sachs said that interest rates in the world's major developed economies have stabilized at various high levels, creating abnormally large yield differences for investors, while exchange rate volatility has fallen to historic lows. A J.P. Morgan Chase index shows that exchange rate volatility is hovering near its lowest level since 2020.