By James McKee – Unlike other western economies the Swiss economy is largely impacted by the Forex market, and that can make for some very interesting intervention measures on the part of the Swiss government. For this reason the Swiss Franc can be an especially good currency for the observant trader. Those who fail to appreciate the volatile nature of the Swiss Franc are sure to be burned by it. The Swiss Franc is governed by the same elements as any other currency including unemployment, GDP, and the like.
Among the best currencies to pair with the CHF is the AUD due to the Aussie dollar’s fairly predictable nature. Investing in another unstable currency such as the USD to pair with the Swiss Franc is a dangerous maneuver since both currencies are extremely volatile. There are still those who will inevitably go with the pair making the assumption that they can see most changes coming with regard to the CHF in the form of its government intervention. Bearing in mind that it can often some time for news regarding a market change to reach a trader the currency becomes more intimidating. After all, no one can outrun the speed at which information travels.
Yes the CHF is indeed an intriguing currency due to its large investment in the Forex market but take heed of my advice and be sensitive to any indicators available when trading this currency. Presently the Japanese government is feverishly attempting to lower the value of the Yen in the Forex currency exchange and so pairing it with the CHF correctly is sure to bring about some healthy profits. Recognizing your pivot points and utilizing techniques such as Fibonacci will help you to scout out your entry and exit points and establish SL and TP values healthy towards your objectives. Keep your head about you! Happy Trading!
About the Author
Author is a Forex trader and financial analyst residing in Denver, Colorado. To stay up to date on all the latest developments in the financial world and beyond be sure to check out the forex exchange rates regularly.
