empty
 
 
pt
Suporte
Abertura instanânea da conta
Plataforma de negociação
Depósito/Retirada

09.11.202010:17 Forex Analysis & Reviews: Dark horse of the stock market: Swiss franc beats the US dollar

Exchange Rates 09.11.2020 analysis

The US presidential election, which is the main event recently, brought the main currencies to the front, but overshadowed the less well-known ones. The attention of market participants was focused on the euro, dollar and pound, as well as the leading precious metals. However, in these races, a dark horse that almost no one was trading on suddenly took the lead – the Swiss franc.

Analysts believe that the Swiss currency suddenly sharply rose in response to the course of the US presidential elections. Last Friday, the price of USD/CHF declined below the August 2020 lows. It should be recalled that Swiss franc reached the level of 0.9000 before summer ended, and traded at 0.8986 last week. Today, the USD/CHF pair traded around the range of 0.8992-0.8993. According to Bloomberg experts, this is a record low for the USD/CHF pair since January 2015.

Exchange Rates 09.11.2020 analysis

The rapid growth of the Swiss franc happened in view of the US dollar's total weakness. We should note that USD is getting cheaper in relation to the leading currencies for four consecutive sessions. Analysts are sure that the victory of Democrat Joe Biden creates the prerequisites for increasing fiscal stimulus, which will put additional pressure on USD. This week started with the USD showing a decline, as the popularity of risky currencies has increased significantly against the background of the Democrat's win. Experts explain this by the positive mood of the market, which expects stability in politics and the economy.

Earlier, we note that the current year began for the Swiss with serious tests. This January, the White House administration put Switzerland again on the list of countries suspected of manipulating the exchange rate. As a result, the Swiss National Bank spent about $ 100 billion on foreign exchange interventions to slow the growth of the franc. These measures slightly helped the regulator: the CHF rate remained within a fair range for a long time.

By the time the US presidential election results were summed up, the main beneficiaries of demand for protective assets were the franc and yen. According to experts' calculations, these two indicated currencies will be the trump card for most investors and will help to save capital during periods of extreme market volatility, as their price can significantly increase. These advantages increase the investment attractiveness of such "modest" means of payment. This is especially true for CHF, which seems low-yielding at first glance, but has an impressive potential.

Larisa Kolesnikova,
Analytical expert of InstaSpot
© 2007-2024
Benefit from analysts’ recommendations right now
Top up trading account
Open trading account

InstaSpot analytical reviews will make you fully aware of market trends! Being an InstaSpot client, you are provided with a large number of free services for efficient trading.

Não pode falar agora?
Faça sua pergunta no chat.