After a strong recovery yesterday afternoon and forecasts of green at the open today, the FTSE 100 has shown some strong resilience on the back of global market unrest this week.
However, according to a US bank, the prospect of continued pressure on the market is not expected to subside anytime soon.
Bank of New York Mellon analysts predict that as carry trades continue to unwind stocks will experience yet more turbulence as the yen strenghtens further.
Bob Savage, head of markets strategy and insights at BNY, said: “Expect the pain for yen shorts to remain in play for the weeks, if not months ahead.
“Further risk reductions are going to follow and August will continue to be a highly volatile month.”