FX Markets Are ‘Very Anxious,' Says Rabobank's Foley

• Global FX markets are experiencing significant anxiety due to geopolitical 'escalation' over the weekend.
• The US Dollar is functioning as the main safe haven, attracting capital due to its liquidity, as investors value safety over returns during uncertainty.
• Traditional safe havens such as the Japanese Yen and Swiss Franc are not performing as expected, with fears of intervention in Switzerland and ongoing anxiety surrounding the Yen since October.

FX markets are 'very anxious' amid global geopolitical tensions, particularly the war in Iran. The US Dollar is currently acting as the primary safe haven, with investors prioritizing liquidity over returns. Traditional safe havens like the Japanese Yen and Swiss Franc are underperforming due to specific concerns, leaving high-yielding emerging market currencies very vulnerable.