JPY will continue to outperform - Danske Bank

Thomas Harr from Danske Bank anticipates the Japanese yen (JPY) remain the top performers due to the central bank’s reluctance to ease monetary policy and lower equities, citing trade-war fears.

Key quotes

• Trump's actions on Friday mark a significant escalation of the trade war.
• Friday's events raise the risk of an all-out economic war between the US and China.
• Equities are set to fall and volatility to rise as the manufacturing/capex slowdown worsens and uncertainty increases.
• Friday's events to trigger a new leg lower in core euro interest rates and a spike higher in volatility. JPY will continue to outperform.