The Japanese yen and Swiss franc have surged as the preferred safe-haven currencies for investors bracing for potential trade wars under a second Trump administration, according to Goldman Sachs and JPMorgan research.

Key Findings:

• Yen gained 3.2% against USD in past week, hitting 147/USD
• Swiss franc volatility index drops to 6-month low (signaling stability)
• Analysts cite both currencies’ negative correlation to Trump tariff risks (r=-0.78)

“These are the cleanest hedges when trade barriers spike,” explains JPMorgan’s currency strategist Paul Meggyesi, noting both nations’:

1. Large current account surpluses
2. Limited exposure to US consumer demand
3. History of appreciating during risk-off periods

Market Impact:

• USD/JPY options show rising demand for 140-strike puts
• Credit Suisse reports 400% increase in franc-denominated bond purchases