Brent Donnelly of Spectra Markets shares insights on currency trading, forecasting that FX will be a key macro asset in 2025. He emphasizes that capital flows influence FX currencies as an accelerant rather than a main driver, particularly in comparison to interest rate differentials. In emerging markets, he notes the significance of carry trades, where investors can profit from holding stable local currencies against the dollar due to positive yield differentials. Regarding the recent Bank of Japan rate hike, Donnelly explains that while hikes are anticipated, the market's expectations and central bank signals could lead to dovish outcomes. He highlights how these dynamics interact with international trade policies, including Trump’s tariff threats, which impact FX movements. More insights are available in the full interview.

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