Chapter 8 – Currency Analysis (Part I)

USD/CHF

  • Switzerland’s official currency is the Swiss Franc, or CHF.
  • Switzerland’s official policy is to maintain Neutrality. Therefore:
  • Swiss Franc is known as the safe-haven currency of the world. It is the mandate of the Swiss government to control and maintain its currency value actively.
  • Swiss Franc will keep its value against depreciation, although the interest rate is minimal (just enough to offset inflation), it is the one currency that trader sought after during Geo-Political uncertainties and for Risk Aversion.
  • Swiss Franc makes up about 4% of the total activities in the Forex Market.
  • Swiss Franc has a direct long-term correlation link to the US Treasury Yield. (One of the most secure instrument in the world backed by the entire assets of the U.S. Government)
  • CHF will move ahead of EURO and GBP. You can use USD/CHF to gauge market sentiment.
  • During recent Carry Trade unwinding, (JPY related pairs), CHF has consistently traded higher than the USD Dollar.

US 10-Year Treasury Yield & USD/CHF Chart

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About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of CurrencyNewsTrading.com, a site dedicated to fundamental analysis and news trading.

Comments

  1. Is there any way to get this book in PDF format
    Thank you
    Marat B

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