Currency Swiss franc – the currency of Switzerland, a country which is one of the largest banking and financial centers of Europe. Until 2000, the notes were backed by gold by more than 40% relative to their nominal value. For this reason, this currency has one of the highest levels of security and has a stable value at the level of precious metals.
These figures made the franc Switzerland, one of the most attractive options for storing capital, many of the investors to invest precisely in this currency for the passive storage of its assets in the form of deposits. Not high interest rates at the same time offset the growth rate in relation to other currencies.
The Swiss banking system is a model of stability and invincibility, which in turn affects the credibility of the currency of the country. And the economy of Switzerland has one of the highest ratings among the developed world powers.
But, despite its strength, this currency is not as widely used in foreign exchange reserves, in contrast to the US dollar and the euro, this is due to low liquidity of the means of payment. Frank rarely used in the calculations for goods and services, its main scope is the banking sector, where it often appears in the calculations and is used to create an investment portfolio.
Since 2006 there has been a clear trend towards a gradual reduction of the Swiss franc, it surely continues to become cheaper against other major currencies. The reason for this was the policy of the leadership of Switzerland, which worried the excessive strengthening of the currency, which makes Swiss products less competitive in world markets.
It should be noted that in early 2012, there was a strengthening of the currency, the reason for this was the global financial crisis, the growth rate may last until the first positive messages about the changes in Europe and the US economy.
Trading on the Swiss franc exchange forex.
As mentioned earlier, this currency refers to alternative means of preserving capital against inflation, which is why its rate is strongly correlated with global currencies as the US dollar, euro and Japanese yen.
When aggravation of the banking, political or financial crisis, when the cheaper currency, the Swiss franc confidence starts to go up, thus confirming its reputation for capital seekers.
That is why the basic strategy that is used by the instrument to trade on forex, is the correlation of currency pairs.
The most popular currency pairs at the same time are – EUR / CHF, USD / CHF, CHF / JPY and GBPCHF, they can be used both in normal trading and the game on the interest rates.
Turnover in CHF FX from the bulk operations constitute about 5%, the highest activity is observed in the operation of the European marketplaces times per session volatility reaches more than 150 points.
Vapors, which include the given currency are high profitability, and have good predictability.
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