According to CoinMeta, market analyst Jeremy Boulton stated that as market volatility increases, leading to larger fluctuations in exchange rates, foreign exchange carry trades are becoming increasingly vulnerable. Unfavorable movements in exchange rates could be sufficient to offset the profits brought by favorable interest rate spreads, or even result in greater losses. Some of the most popular carry trade currencies have seen significant adverse trends: since the prospects for the Federal Reserve to raise interest rates in September became clear, the Mexican peso has fallen by up to 9%, the South African rand has dropped by more than 5%, and the Hungarian forint has lost over 7%. Japan's measures to support the yen have led to a slight increase in the yen's value, while the collapse in the French bond market has undermined market confidence, dragging down the euro and pushing up the Swiss franc. This has further exacerbated the losses faced by carry trades that rely on a stable market environment. If the stock market continues to correct, carry trades may face a collapse. As investors look to lock in profits before the end of the year and amid the uncertainties surrounding the U.S. elections in November, risk assets such as stocks may come under further pressure.