FX market moves towards safe haven plays – DBS

FXStreet (Barcelona) - The DBS Group Research Team notes that given the risk aversion in markets from declining oil prices, the broader currency market has moved towards safe haven plays.

Key Quotes

“Given the risk aversion in financial markets from lower oil prices, a weak Nikkei weighing on USD/JPY, a weak EUR from QE and Grexit fears, and the AUD, NZD and CAD hurt by commodity prices, the broader currency market has moved from relative value towards safe haven plays, namely in selling European and commodity currencies against the yen. This is likely to persist as long as markets continue to view the global economy as half empty, rather than half full.”