Swiss franc crashes, USD/CHF hits 0.9000. What's happening?
CHF crashing on Swiss weakness
US dollar appreciates on strong US data
The US dollar has posted a strong 2024 so far, primarily driven by the United States' relative outperformance in key economic indicators, such as GDP growth rates. This strength showcases the impactful relationship between a nation's economic health and its currency's performance on the global stage, emphasizing the importance of keeping abreast of macroeconomic data for trading strategies.
Fed Chair Powell confirms rate cuts coming
Fed Chair Jerome Powell's announcement during the March FOMC meeting of likely interest rate cuts "at some point this year" adds a new layer of complexity to forex markets. In theory, this news should weaken the US dollar, as investors anticipate a lower yield for USD in the future. However, it is important to remember the importance of relative strength in forex pairs - and the US still boasts interest rates over 5%.
Surprise rate cut from Swiss National Bank
In a surprising move, the Swiss National Bank reduced its interest rate by 25 basis points to 1.50% last Thursday. This move makes the SNB the first major central bank to begin cutting rates. The franc immediately declined as a result, sending USD/CHF through 0.9000.
Where is USD/CHF price going?
Considering USD/CHF historical fluctuation between lows of 0.8400 and highs of 1.000 in recent years, the future direction of this currency pair from 0.9000 could go in either direction. Traders closely monitor economic developments, central bank policies, and external geopolitical events, all contributing to the pair's trajectory and presenting potential opportunities for strategic forex trading.
How to trade USD/CHF
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on USD/CHF
Trading forex requires an account with a forex broker like tastyfx. USD/CHF can be found in the 'Major' pairs tab. Many traders watch major forex pairs like GBP/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like tastyfx’s YouTube channel. Our curated playlists can help you stay up to date on current markets and understanding key terms. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by tastyfx, a trading name of tastyfx LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. tastyfx accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
