Switzerland’s currency, “the franc” plays an important role in the international capital markets.
Due to Switzerland’s history of political neutrality and reputation for stable and discrete banking, the Swiss franc is generally looked upon as a safe haven in international capital markets.
During times of international turmoil investors often flee to the safety of the Swiss franc. For that reason, when volatility rises in the financial markets ( have you checked volatility as of late? ) , investors often bid up the Swiss franc at the expense of other currencies.
I rarely trade CHF as the Swiss National Bank is notorious for “forex market intervention” and have “on numerous occasions” entered forex markets with massive sales / purchases in order to keep the currency under control.
We are living in desperate times and in turn, desperate actions “may be required” – in order to survive. I strongly encourage all of you to do a bit of research, in order to better understand the Swiss Franc and it’s role in global currency trade.
To make a long story short The SNB has scared the bejesus out of speculators so many times in the past ( as to keep the currency from rapidly rising ) that it’s become the “two-headed step child” of the currency market for years. Massive interventions ( as the SNB has close to as much money as god ) have allowed the Franc to stay at a manageable level but…….as we are living in desperate times…..get an eye on it.
Trades “short commods” and “long CHF” would also make sense moving forward ( however dangerous to the novice ).