Goldman Sachs sees a scope for FX carry strategy to outperform over the coming months 

"We argue that carry bears more relevance for G10 FX markets now than it has at virtually any other point since the year 2000, and we continue to see value in carry strategies funded by G10 low-yielders (JPY, CHF, EUR, CAD) in the months ahead," GS notes.

"G10 FX currently boasts the combination of historically elevated levels of outright carry, and historically subdued levels of vol. A stabilisation in G10 policy rates at high and varied levels following the post-Covid inflation surge and recent energy shock has helped allow for this dynamic, but in practical terms for FX markets, it has produced exceptionally high levels of carry-to-vol currently, including near multi-decade highs for the likes of EUR/CHF and USD/CAD.  

We view the opportunity to earn carry in G10 FX while remaining relatively insulated from (or even hedged against) drawdowns in risk as a useful option in multi- asset portfolios in the current backdrop," GS adds.