empty
29.01.2020 01:07 AM
Swiss franc: feast during the plague?

This image is no longer relevant

The Swiss currency is actively gaining momentum, surprising the market with rapid growth. According to analysts, the rise of the Swiss franc is due to world markets' fears over the spread of the Chinese coronavirus.

Most investors who are seriously worried about the epidemic that came from China go into defensive assets, one of which is the Swiss franc. In relation to the European currency, the Swiss has reached the highest level that has not been recorded over the past three years. In the USD/CHF pair, the growth of this currency is not so impressive: it is restrained by the negative attitude of the American authorities to the policies pursued by the Swiss National Bank (SNB). Recall that previously Washington accused the country's monetary authorities of manipulating the national currency.

The intervention of US authorities provides additional support to investors. Currently, Swiss franc sellers have stepped up, taking advantage of the fact that the USD/CHF pair is in a bearish trend. Last week, experts recorded its correction, and now recommend opening short positions on the USD/CHF pair.

On Tuesday, January 28, the dynamics of the USD/CHF pair remains unchanged. The pair froze at 0.9683, not wanting to move up or down.

This image is no longer relevant

Now the Swiss currency is contemplating where it should direct the vector of its movement. Earlier, the franc was rapidly growing in price in relation to other European currencies. However, the threat of the spread of coronavirus has made adjustments. Together with the Norwegian krone, the Swiss franc may yield to its competitor, experts said.

On Monday, January 27, the highest growth was recorded in the CHF/NOK pair, which is only 2.3% lower than the record for 2015. Recall that in that period the pair reached the level of 9.5538. The reason for the dizzying takeoff was the sudden abolition of the SNB limit of strengthening the national currency at 1.20 francs for a euro.

Analyzing the situation with the current explosive growth of the Swiss franc, many experts draw a parallel with the feast during the plague. It turns out that the Swiss currency took advantage of the difficult situation on world markets, not missing a chance to rise. However, the taste of victory was mixed with bitterness and anxiety for the future. At the same time, the tense external background does not allow the franc to turn around, holding back further growth. In the short term, the Swiss currency will maintain its current dynamics, experts said.

Larisa Kolesnikova,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Gold slips, stocks sink: what India, Germany and the Fed have in common

Equities are falling on stalled tariff agreements ahead of the Fed decision. Gold is sliding on renewed US-China talks. UK and India have clinched a major trade pact. Friedrich Merz

12:36 2025-05-07 UTC+2

US Market News Digest for May 7

The major US stock indices closed in negative territory, with the S&P 500 down 0.8% amid growing uncertainty about trade policy and anticipation of new comments from the Federal Reserve

Ekaterina Kiseleva 12:20 2025-05-07 UTC+2

Gold falls, stocks plunge: What India, Germany and the Fed have in common

Stocks fall on lack of tariff deals ahead of Fed policy decision Gold falls on hopes for US-China trade talks; UK, India reach trade deal after 3-year talks Germany's Merz

Thomas Frank 07:05 2025-05-07 UTC+2

US Market News Digest for May 6, 2025

The US stock market opened the week in turmoil. Berkshire Hathaway shares were trading under pressure after Warren Buffett had Stepped down as CEO. Investors are concerned about the company's

Ekaterina Kiseleva 13:52 2025-05-06 UTC+2

$9 Billion for Skechers, falling indices, and surge in Asian stocks

Berkshire Hathaway slips after Warren Buffett steps down as CEO. The US services sector shows growth in April. Skechers surges following a $9 billion privatization deal. Investors await trade agreements

13:26 2025-05-06 UTC+2

Skechers' $9B, Indexes Sink, Asia Surges: A Day of Change

Berkshire Hathaway Slips After Buffett Steps Down as CEO U.S. Services Sector Rising in April Skechers Jumps After $9B Privatization Deal Investors Await U.S.-Partner Trade Deals Asian Currencies in Focus

Thomas Frank 07:41 2025-05-06 UTC+2

US Market News Digest for March 17

US stock indexes, including the S&P 500 and Nasdaq, ended the week confidently in positive territory. This was largely due to encouraging developments in trade talks with China and resilient

Ekaterina Kiseleva 13:32 2025-05-05 UTC+2

Europe on pause: What's behind the stock market plunge and Trump's unexpected activity

European stocks fell slightly; STOXX 600 - minus 0.1%, France - minus 0.3% Investors await data on US-China talks, earnings and Fed decision Trump: 100% tariffs on foreign films, Alcatraz

Thomas Frank 11:34 2025-05-05 UTC+2

US Market News Digest for May 2

US equity indices continue to climb despite lingering economic uncertainty. Investor optimism is being driven by expectations of progress in trade talks between the US and China. Nevertheless, ongoing economic

Ekaterina Kiseleva 13:14 2025-05-02 UTC+2

US Market News Digest for May 1

The US stock market weathered notable volatility in April, but a successful rally helped major indices recoup losses. Despite data showing a 0.3% contraction in US GDP for the first

Ekaterina Kiseleva 11:54 2025-05-01 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.