Safe Haven Demand Causes Swiss Franc to Rally
Arslan Butt • 1 min read
The trade war continues to dominate the sentiment in global financial markets as well as in forex markets. Even as there is no word from China or the US regarding resumption of trade talks, US and Mexico are getting ready to resolve their differences before the new duties of 5% come into effect.
As a result of this, there is a risk-off sentiment prevailing in the markets, causing higher demand for safe haven assets. The Japanese yen and GOLD continue to remain in focus, but USD/CHF has also been of some interest among traders recently.
At the time of writing, this forex pair is trading at around 0.9968, after the safe haven Swiss franc gained over 3% against the US dollar over uncertainties prevailing in the markets. Even the US dollar index, DXY, has fallen below 98.00 and is now trading at 97.73.