FX Markets

BNP responds to unwinding carry with two new indexes

Galaxy Alpha and Galaxy Alpha Plus are designed to extract the best performers in a basket of 24 currency pairs on the grounds of interest rate differentials. The currencies include emerging market currencies from Latin America, eastern Europe, Asia and the G-10.

The currency selection takes place on a monthly basis and only considers performance over one month. "We found this gave the best indication of carry unwind," said Kara Lemont, London-based European head of interest rate and foreign

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