USDJPY and safe haven assets
Safe haven assets are on the rise. In the time to come we believe that safe have assets will continue their climb. US president Donald Trump recently stated that tariffs on China will stay until they comply with the “deal”. The “deal” is very difficult to comply with as it includes buying additional US goods and enforcing international copyright laws. This whole situation adds to the risk-off scenario and instability of world economic growth.
Dovish guidance from the world central banks add to this category of investment opportunities. The Swiss National Bank, Bank of England, and Federal Reserve all recently made comments that they will take a dovish approach to monetary policy and not raise interest rates in the near future. The SNB already is keeping interest rates at -0.25%. The lowest current interest rate in the world. Collectively the monetary authorities are indicating to us that we are in the late end of the business cycle.
The Australian and New Zealand Dollars have managed to standout in the currency markets. This is due to supportive economic data from their countries. Australia is enjoying an 8 year low in their jobless rate. The NZD actually picked up due to growth in their GDP. We would like to point out that the risk aversion currently present in the market could cause the Japanese Yen to grow while other currencies sink.
Dovish guidance from the world central banks add to this category of investment opportunities. The Swiss National Bank, Bank of England, and Federal Reserve all recently made comments that they will take a dovish approach to monetary policy and not raise interest rates in the near future. The SNB already is keeping interest rates at -0.25%. The lowest current interest rate in the world. Collectively the monetary authorities are indicating to us that we are in the late end of the business cycle.
The Australian and New Zealand Dollars have managed to standout in the currency markets. This is due to supportive economic data from their countries. Australia is enjoying an 8 year low in their jobless rate. The NZD actually picked up due to growth in their GDP. We would like to point out that the risk aversion currently present in the market could cause the Japanese Yen to grow while other currencies sink.
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