Swiss franc stability brings new highs
The Swiss franc has held strong against other major currencies in a volatile year. Often denoted as a "safe haven" currency, it has even outperformed other currencies traditionally in the category like the US dollar and Japanese yen. With recent weakness in both the dollar and yen, traders could be signaling preference towards CHF as the most reliable currency in times of volatility.
CHF price extremes
Over the past week, CHF/JPY is trading above 162.00 - the highest price since tastyfx began recording historical data for the pair in 1996. This rally has resulted in a 2400 pip increase year-to-date from lows in January 2023.
USD/CHF has not made any further moves lower in the past week, but still sits below 0.8700. This trading range was last observed in 2015.
Later this week
Interest rate decisions will be released by the US, Euro Area, and Japan. Hikes are expected by both the US and the ECB, but Japan will likely stay at -0.1%. How will CHF pairs be affected by these possible changes in interest rates?
How to trade Swiss franc
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on CHF pairs
Trading economic events with forex requires an account with a forex provider like tastyfx. CHF pairs can be found in tastyfx's platform under both the 'Major' and 'Minor' pairs tabs. Many traders also watch major forex pairs like EUR/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 Learn Center. 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.
