How are you reading the Swiss story right now?
Swiss inflation rose to 0.8% (report) and the SNB decides on 24 September with rates at 0% (preview).
Post your read:
- whether inflation changes the SNB's calculus
- how the haven bid is affecting the franc
- the franc pairs you're watching
Background: safe-haven currencies.
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.
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