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Sep 06 - 12:55 PM

G10: USD is Investors' First Choice For Safe Haven Followed By CHF; JPY Is Cheap Here - Credit Agricole

By eFXdata  —  Sep 06 - 11:15 AM

Credit Agricole CIB Research sees the USD and CHF are investors' safe haven choice and notes that the JPY is currently in undervalued territory.

The weak JPY is still not bothering the government all that much. Indeed, Japan’s Finance Minister Shun’ichi Suzuki has so far kept verbal intervention in the currency at the mild end of the spectrum by repeating that the government will continue to watch FX moves with a high sense of urgency. With the government and BoJ still likely on the side lines, the only significant support for the JPY is its appeal as a safe-haven currency," CACIB notes. 

"The USD is investors’ first choice and the CHF is likely the second choice given its geographical proximity to Europe, which currently needs safe havens, and the currency offers short-term positive yields. The JPY offers no short-term positive yields and is more exposed to high energy prices than the USD and the CHF. The JPY’s only safe-haven appeal at the moment is that it is cheap," CACIB adds. 

Source:
Crédit Agricole Research/Market Commentary

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