David Matthew_ Walker#84

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How do safe-haven currencies behave in global crises?

Safe-haven currencies—USD, JPY, CHF—attract flows during uncertainty. For example, JPY strengthens in equity selloffs due to Japan’s creditor status, while USD dominates as global reserve. Institutions model safe-haven flows through volatility indices and risk sentiment. Retail traders can anticipate crises by monitoring VIX spikes or geopolitical headlines. Benefits: safe-havens provide clarity in chaos. Risks: reversals occur quickly when confidence returns. Safe-haven dynamics reveal that forex reflects psychology as much as fundamentals—fear and trust drive capital across borders in crisis.