USD/CHF Forecast: USD Continues To Climb Against The Swiss Franc
This is a very difficult barrier to get beyond though for the USD/CHF pair, and I am aware of that, but from a fundamental analysis standpoint, there's no reason to think that we can't eventually get above there.
After all, the Swiss National Bank recently just cut interest rates by 50 basis points in a bit of a panic move, and at the same time, you have the Federal Reserve in the United States probably staying tighter for longer with a higher interest rate than Switzerland. So, you get paid at the end of every day and you also have to keep in mind that the US economy is running really hot and that will continue to be the story here with President Trump in office, it will be a very pro-business administration. So, one would have to think at least for the time being, you are going to continue to see a lot of money flow into the United States.
Currently, in Switzerland
(Click on image to enlarge)
Contrast this with Switzerland, which although a safe haven region, the problem Switzerland has is that something along the lines of 80% of its exports go to the European Union. The European Union has been a bit of a basket case over the last couple of years, and especially over the last six months. As long as that's the case, the Swiss, unfortunately, are surrounded by failure. I believe this pair continues to go higher over the longer term.
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