Currency Strategists Brace for Trade War Worse-Case Scenarios
- BofA shorts euro-yen pair, Westpac sees safety in bonds
- Exchange-rate impact of trade war underappreciated: Pictet
This article is for subscribers only.
As U.S.-China trade-war rhetoric escalates without any plan for a resumption of negotiations, currency strategists are mapping out foreign-exchange implications.
Bank of America Corp. sees the Japanese yen strengthening as investors flee risky assets, and has recommended an associated euro-yen trade. Goldman Sachs Group Inc. warns that currencies from the euro to South Africa’s rand and Chile’s peso could be in the firing line. And Westpac Banking Corp. sees bonds as a safe bet.