Talking Forex
Safe Havens
The Norwegian Kroner as a safe haven?
Post the Swiss National Bank pegging the CHF to the EUR, with a minimum exchange rate of CHF1.20, forex traders have been scurrying to find a new safe haven, and some have been turning to the Norwegian Kroner (NOK). Norway has a strong fiscal position with a positive account surplus, a fiscal surplus and a … Continue reading
Commodity currencies – the new safe havens?
With both the EUR and the USD buckling under the weight of their respective debt crises, traders and investors are searching for a new safe haven. Gold has been doing very well, hitting record high after record high. The Swissie has also been faring well, with the USD/CHF hitting another record low in late July. … Continue reading
Forex features – safe haven currencies – the USD
Why is the USD a safe haven currency? The US economy is in much worse shape than that of the CHF, another safe-haven currency. In theory, a safe-haven currency should also be resilient to global economic problems, which the US is not, a result of having major trading partners across a number of continents. However, … Continue reading
Forex features – safe haven currencies – the JPY
Recent concerns about the eurozone have resulted in funds being directed to the Japanese Yen, which is considered to be a safe haven. The reasons why this is so remain unclear – Japan’s economy is not in good shape, and when compared to the CHF, the JPY isn’t doing very well. The popular theory is … Continue reading
Forex features – safe haven currencies – the CHF
The CHF is considered to be a safe-haven currency for a number of reasons, including economic fundamentals, a lack of competition and liquidity. Economic fundamentals Switzerland has a strong economy with low inflation, low unemployment and conservative and transparent monetary policy. Its business environment is also highly competitive, along with low corporate tax. Swiss exports … Continue reading
Safe haven currencies
What is a safe haven currency? A safe haven currency is a currency that is considered to be safe during geopolitical and economic turmoil. Consequently, when events like natural disasters, war and stock market crashes occur, currency traders invest in safe havens, causing the value of the safe haven currency to rise and the value … Continue reading
Talking Forex 