28 Apr 2014
Geopolitical jitters bolster JPY, CHF - BTMU
FXStreet (Barcelona) - Lee Hardman, FX Analyst at the Bank of Tokyo Mitsubishi UFJ, observes the demand for safe havens JPY and CHF have accelerated on the back of the situation in Ukraine.
Key Quotes
"The traditional safe haven currencies of the yen and Swiss franc continue to derive support in the near-term from rising geopolitical tensions related to ongoing developments in the Ukraine. Asian equity markets have declined overnight with the Nikkei 225 index having fallen by around 1% and extending its year to date decline to close to 13%."
"Still despite rising geopolitical tensions, the G10 foreign exchange market continues to remain remarkably stable. Volatility especially amongst the major foreign exchange rates has fallen back towards the lows prior to the global financial crisis recorded in the middle of 2007. The improving global growth outlook in the advanced economies combined with still exceptionally loose monetary policy are both playing their part in dampening foreign exchange and financial market volatility."
Key Quotes
"The traditional safe haven currencies of the yen and Swiss franc continue to derive support in the near-term from rising geopolitical tensions related to ongoing developments in the Ukraine. Asian equity markets have declined overnight with the Nikkei 225 index having fallen by around 1% and extending its year to date decline to close to 13%."
"Still despite rising geopolitical tensions, the G10 foreign exchange market continues to remain remarkably stable. Volatility especially amongst the major foreign exchange rates has fallen back towards the lows prior to the global financial crisis recorded in the middle of 2007. The improving global growth outlook in the advanced economies combined with still exceptionally loose monetary policy are both playing their part in dampening foreign exchange and financial market volatility."