We believe Greece will remain in the euro, but analyse the situation using a simple decision tree framework to look at other possible scenarios. We would caution that GBP may not be the shelter from the euro storm that many suggest. There are grounds for GBP’s resilience, but these could vanish were the euro situation to deteriorate.
*JPY: The only true safe haven
The yen can lay claim to being the only true safe-haven currency. For the yen to rise, all that is required is that Japanese investors decline to add to their already large overseas asset holdings.
*SEK: Myth Busters
The conventional wisdom on the SEK is that it is simply an equity market play. We think this is flawed and that there is an opportunity for other drivers to gain traction.
Click here to read the full report: Global Research
HSBC
Global Research