Credit Suisse's comments on the foreign exchange market were as follows:
- Continues to favor the lower yielders G10 currencies such as the Swiss Franc and the Japanese Yen against high yielding currencies such as the Australian Dollar and the New Zealand Dollar, and that is our view for the past 6 weeks.
- The EUR may be hit hard in April on Italian policy, but we would buy the dip.
- Buying the Pound is no longer clear and may be subject to extreme volatility before the end of this month, as any problems related to Brexit agreement with the EU have emerged.
- In terms of valuation, the US dollar is not cheap, but the political risk premium is unusually high.
- Tariffs have more negative impact on the US dollar.
