Is the Euro the New Safe Haven?

Following calls for parity against the dollar just a few months ago, the single currency is now one of the few assets in the world rallying.

Global stocks had their worst week of the year last week and the only assets to perform well were the traditional “flight to safety” assets, such as the Swiss franc, U.S. Treasurys and gold.

However, the euro has proved the surprise outperformer, appreciating 4.5 percent against the U.S. dollar in the last two weeks. It continued to gain on Monday, trading 0.8 percent higher against the greenback at around $1.148 in early London trade.

Analysts attributed the strong performance to waning fears about European economies, with one saying the euro was demonstrating “safe-haven” qualities.


Craig Erlam
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the BBC and The Telegraph, and he also appears regularly as a guest commentator on Bloomberg TV, CNBC, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.