The Swiss franc (CHF) typically rises during geopolitical uncertainty as a safe-haven currency. Its value may only climb if the Iran situation resolves positively. A successful resolution would boost market confidence, prompting relief-driven buying and stabilizing both the CHF and broader markets.
I think the only way swissy will go as high s that is when the Iran situation gets resolved with a happy ending....otherwise who will buy buck from your swiss if things are so unstable? Bear in mind that CHF is the money that everyone purchases whenever there is geopolitical concern.... And there is that. . .so if Iran gives a positive answer to the incentive package then market players can show the releif and also for certain there'll be relief for the group
Anyone else find the USD/CHF pair heading 500-700 pips at the 1.5 months up to come? I understand it will depend a great deal on the attitude of the FED, since it has become probable that Bernanke will promote a second increase following the Fed meeting. Other factors, such as oil, will also have an effect...
Thanks.
Posting Permissions
Reply With Quote