Morgan Stanley said that the risk of further intervention by the yen may prompt investors to stop using the yen as a financing currency for arbitrage transactions and instead choose the euro and the Swiss franc. Strategists David Adams, Andrew Waterloo, Molly Nicolin and others wrote: “If certain pre-risks continue to make investors cautious in the short term, the market may withdraw from yen financing positions and seek new financing currencies.” Analysts pointed out, “The expected intervention of the yen means that the euro and the Swiss franc are expected to become the preferred new financing currencies. Considering that geopolitical conflicts will spawn safe-haven purchases, there is a sudden risk of shorting the Swiss franc, and the popularity of the euro may be even higher.”

Morgan Stanley said that the risk of further intervention by the yen may prompt investors to stop using the yen as a financing currency for arbitrage transactions and instead choose the euro and the Swiss franc. Strategists David Adams, Andrew Waterloo, Molly Nicolin and others wrote: “If certain pre-risks continue to make investors cautious in the short term, the market may withdraw from yen financing positions and seek new financing currencies.” Analysts pointed out, “The expected intervention of the yen means that the euro and the Swiss franc are expected to become the preferred new financing currencies. Considering that geopolitical conflicts will spawn safe-haven purchases, there is a sudden risk of shorting the Swiss franc, and the popularity of the euro may be even higher.”