Jane Foley, senior FX strategist at Rabobank, points out that the best performing G10 currency on a 1 day view is the safe haven JPY followed by the CHF and the USD and a day which has the safe haven JPY at the top of the table and the AUD at the bottom sends a clear message about the levels of anxiety in the market.

“Traditionally the JPY and the CHF have been the FX market’s preferred safe haven currencies. The USD has traditionally had a more volatile relationship with the status of safe haven. Given growing recognition that that the current dispute between the US and China could be more cold war than trade war and on the back of growth tensions regarding Iran we see risk for USD/JPY to push towards the 108.00 area in the coming months.  That said, we expect the USD to outperform a wide basket of other currencies.”