Forex Trading News – Swiss Franc hits yet another record high

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The Swiss franc hit another record high against the dollar in Wednesday’s US trading session.

The USDCHF pair has been steadily declining since the beginning of the year, with a few corrections in between.

The Franc has been traditionally known to be a safe haven asset, meaning in times of crisis in the world, whether it be financial or natural disaster, or any socio-political uncertainty, investors prefer to hold the currency. The increase in demand makes the franc appreciate in value. The Swiss economy is famous for being stable. Currently, compared to the US, Switzerland’s economic conditions are far better than in the US. The Fed is expected to maintain its loose monetary policy, which is weighing down the Dollar.

The USDCHF pair touched down to a record low of 0.8551 francs at 1400GMT but then weakened slightly as traders began to take profits.

Some analysts expect Swiss National Bank is likely to tighten monetary policy this year, meaning there was further room for franc appreciation against the dollar.

“With interest rate spreads now in favour of the franc (measured by 2Y swaps) downside pressure on USD/CHF is likely to persist in the near term,” Credit Suisse analyst Marcus Hettinger wrote in a note.