US dollar, Swiss franc and yen set to continue to outperform in the near-term – MUFG

The US dollar has continued to trade at stronger levels after it regained upward momentum on Tuesday. Global growth fears are driving FX market, therefore, the US dollar, Swiss franc and yen appear set to continue to outperform in the near-term.

Intensifying global growth fears trigger renewed upward momentum

“Price action is being increasingly driven by safe-haven demand as fears over a sharper slowdown/recession for the global economy continue to intensify. In the current circumstances, the traditional safe-haven currencies of the US dollar, Swiss franc and yen appear set to continue to outperform in the near-term.”

“Market participants will remain concerned over energy supply constraints in Europe given significantly restricted flows from Russia at present. It is keeping downward pressure on the euro and other European currencies.”