CAD/JPY and CHF/JPY: what are you watching?
Two quiet crosses with distinct personalities: CAD/JPY carries the oil-yen story, CHF/JPY the haven-versus-haven puzzle. Both are under-covered.
Post:
- the cross you follow and the story it tells
- how oil reaches CAD/JPY
- how two havens price against each other
Background: safe-haven currencies and oil and CAD.
Background: Safe-haven currencies: why the yen and Swiss franc rise in a crisis
When markets panic, money flows into a few currencies seen as safe. Why the yen, franc and dollar play that role, and when it breaks down.
Why is the yen a safe-haven currency?
Japan holds large foreign assets that tend to be brought home in a crisis, and the yen is widely borrowed to fund carry trades. Both lead to yen buying when markets fall.
What is a risk-off move?
A shift away from risky assets such as stocks and higher-yielding currencies, towards perceived safe havens such as the yen, Swiss franc, dollar and gold.
Comments
Log in to join the discussion. Comments follow the community guidelines.
Log in to commentLoading comments…