Strongest franc since euro depeg
Further strength in the Swiss franc has traders looking back to 2015 - the last time widespread extremes occurred across CHF. Learn what affected markets back then and how it compares to markets today.
News out of Switzerland has been quiet, yet the franc is outperforming many major currencies. In USD/CHF, July's trading range was last seen in 2015 - when the Swiss National Bank elected to distance the franc from the euro.
Switzerland's history with the euro
On January 15th, 2015, Switzerland decided to remove its peg to the euro. The fixed 1.20 conversion from franc to euro only lasted four years, and shocked forex markets as a result. The impact of the announcement was especially immense because Switzerland previously reiterated their expectation of a longstanding tie to the euro. This event caused CHF pairs like USD/CHF to experience price extremes as markets reset.
Now in 2023, the Swiss franc has returned to strength - without a drastic event to attribute the trend to. This time around, traders could be looking to CHF as a "safe haven" investment, a place to potentially avoid volatility. Under this hypothesis, no news is good news, and franc strength could continue.
How to trade Swiss franc
- Open an account to get started, or practice on a demo account
- Choose your forex trading platform
- Open, monitor, and close positions on CHF pairs
Trading forex requires an account with a forex provider like IG. CHF pairs can be found in IG's platform underboth the 'Major' and 'Minor' pairs tab. Many traders also watch major forex pairs like GBP/USD and USD/JPY for potential opportunities based on economic events such as inflation releases or interest rate decisions. Economic events can produce more volatility for forex pairs, which can mean greater potential profits and losses as risks can increase at these times.
You can help develop your forex trading strategies using resources like IG’s Trading Academy. Once your strategy is developed, you can follow the above steps to opening an account and getting started trading forex.
Your profit or loss is calculated according to your full position size. Leverage will magnify both your profits and losses. It’s important to manage your risks carefully as losses can exceed your deposit. Ensure you understand the risks and benefits associated with trading leveraged products before you start trading with them. Trade using money you’re comfortable losing.
This information has been prepared by IG, a trading name of IG US LLC. This material does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. You should not treat any opinion expressed in this material as a specific inducement to make any investment or follow any strategy, but only as an expression of opinion. This material does not consider your investment objectives, financial situation or needs and is not intended as recommendations appropriate for you. No representation or warranty is given as to the accuracy or completeness of the above information. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. See our Summary Conflicts Policy, available on our website.
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