Forex Investment and Currency Trading

The swiss franc has, or we should say had, a reputation for being a safe-haven currency. Apart from Switzerland’s historical neutrality and legendary bank secrecy laws, this reputation is largely a relic of the Cold War. At the time, fears of a European ground war between the United States and the Soviet Union meant most European financial centers could be out of business in short order. In terms of a major European currency alternative to U.S. dollars or German deutsche marks, the CHF became the safe-haven currency during times of geopolitical tensions.
There are still plenty of people in the market [...]

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CHF has gained handsomely on the worries over global growth, tightening credit conditions and the steady deterioration in risk appetite. FX models say relative to the move in risk sentiment (captured by option vol, credit spreads and equities), EUR/CHF is now broadly fairly valued.
Evidence of global economic recoupling will see the CHF appreciate further against the USD and other major currencies (the JPY likely the main exception). But European contagion will happen only slowly. Euroland has been hit by a supply-side shock that burns more slowly than the demand shock that’s hit the US economy. Transmission from slower US growth [...]

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USD/CHF – Failure to reach resistance at 1.0328 increases the chances of a return to 0.9651 in the weeks ahead.
Although USD/CHF engaged in a price correction last week, the failure to reach initial resistance at 1.0328 indicates that bearish USD sentiment remains prevalent. With valuations moving from oversold to neutral, the resistance at 1.0328 will attract selling interest for a return to the early March low at 0.9651. 0.9800 is the price target this week inlight of the bearish view.
 

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