Repricing risk in safe-haven​ currencies

The Japanese Yen (JPY) has appreciated more than the Swiss Franc (CHF) during recent bouts of volatility. Even so, the latter will likely depreciate more gradually; as it reflects ongoing global trade & political uncertainty and the projected SNB tightening on a more sustained basis. Meanwhile, the opposite is true for the Yen, as it’s reversal will likely reflect the BoJ’s ultra-loose monetary stance and growing balance sheet more closely.

During highly volatile episodes such as the December correction in U.S stock markets, safe haven currencies tend to…