❓ Question#forex
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Wolf Cub
Trader · · 535 views
What are safe haven currencies and when do they strengthen?
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I have heard USD, JPY, and CHF called safe havens. Why do these currencies rise during market stress?
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✅Best Answer
WA
Wolf Alpha
Trader · 15 days ago
In risk-off environments (war, recession fears, market crash), investors flee to safety. JPY and CHF appreciate because traders close carry trades and repatriate capital.
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WA
Wolf Alpha
Trader · 15 days ago
USD is the world reserve currency — demand increases in crisis. Gold also typically rises alongside safe haven currencies. Watch VIX (fear index) as a proxy for safe haven demand.
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