Is the Swiss franc the strongest currency?
Key points
- Swiss franc is up 300 pips over USD year-to-date
- Client sentiment in USD/CHF is still uncertain at 52% short
- EUR/CHF closed last Thursday at its lowest level since tastyfx began recording price history for the pair in 1999.
CHF is outperforming USD and other major currencies
In a strong year for US dollar, not many major currencies have gained on USD since the start of the year. Only British pound (up ~65 pips) and Swiss Franc (up ~300 pips) have outperformed USD since January. Currently trading around 0.8950, USD/CHF has only traded under 0.9000 in 16% of days since 2019. However, tastyfx clients still believe the pair can fall further as 52% of clients in USD/CHF hold short positions.
In recent years, Swiss franc has been bought by traders as a flight-to-quality asset. In the current landscape, its possible traders anxious about Europe's potential involvement in the Israel-Hamas conflict are favoring CHF over EUR as a risk-off play.
Data as of 10/24/23
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 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 tab. Many traders also 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 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.
What is client sentiment?
Client Sentiment shows the percentage of tastyfx client accounts with open positions that are currently long or short. If the majority of client accounts with open positions are long a given market, then they expect the price to rise; if the majority is short, then they expect it to fall.
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.
