The USD/CHF pair rose on Wednesday as traders continue to buy the USD as a safe haven trade. With the Swiss National Bank actively jawboning and working against the Franc, this makes sense as the Dollar truly is the last “safety trade”. The Federal Reserve disappointed with the announcement, and as a result – the world buys the Dollar. The Swiss Franc cannot be bought as it is capped at this point by the SNB, so this trade should continue to work to the upside for the foreseeable future. The 0.9000 level could cause a bit of a pullback, but parity is probably in the cards at this point.
Written by FX Empire