#AIImpactOnForex Improving Carry Trade Strategies with AI Carry trade strategies, which profit from differences in interest rates between currencies, can be significantly enhanced using AI. Traditional carry trades face risks from sudden market shifts, but AI can help by dynamically assessing risk and optimizing timing. Machine learning models, especially deep learning and reinforcement learning, can analyze vast financial data sets to predict currency movements, volatility, and macroeconomic trends. AI also enables real-time risk management by identifying early signs of regime changes or market shocks. By integrating alternative data sources like sentiment analysis and geopolitical news, AI-driven carry strategies can adapt faster and achieve more consistent returns compared to traditional approaches.