What really drives the profitability of currency carry trades? In this deep dive, we break down the fascinating connection between global neutral interest rates and carry trade returns, inspired by the academic study Twin Stars: Neutral Rates and Currency Risk Premia by Furu, Fontaine, and Crone.Join us as we explore how long-term interest rate trends, bond market connections, and shifting global economic forces shape currency risk premiums. Are big yield gaps always a green light for carry trades, or is there more beneath the surface? Tune in to uncover the key insights that could change how you think about forex markets and macroeconomic trends.Find the full research paper here: https://community.quantopian.com/c/community-forums/how-global-neutral-rates-impact-currency-carry-strategies-quantpedia
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