I reckon their reasoning is that last week’s market performance was a harbinger of things to come. In the note here, they say that global growth is “not out of the woods yet” after some improvement in Chinese data. But in this context, it makes me wonder why favour the dollar over the yen?

Anyway, I don’t believe markets are in full fear mode just yet about concerns of a recession. Sure, last week was certainly a good kick in the back side but given the way market participants are looking for any last ditch of hope to hang on to (trade optimism, PMI bounces etc) we may only start to see some real flows into haven assets in H2 2019 – when things are less bright than they are now.