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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.

CNBC [1]

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam [5]

Senior Market Analyst - UK & EMEA at OANDA [6]
Based in London, Craig Erlam joined OANDA in 2015 as a Market Analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and BNN. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam
Craig Erlam

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