Forex Trends Ready To Move
Financial markets are starting to get back into the swing of things after the holiday-thinned trading sessions that typically mark the beginning of each year. In these cases, price volatility tends to slow to the point that it can be difficult to generate significant profits. But this period is now coming to a close and we are now seeing situations where forex trends are starting to reassert themselves.
Watching The Swiss Franc
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When we are looking at these dominant trends, one of the most interesting currencies is the Swiss Franc. Forex pairs like the EUR/CHF and the USD/CHF have created some of the best trading opportunities in the forex markets over the last five years — and this looks to be something that is set to continue in 2016. When dealing with this specific currency, it is often a good idea to use a Swiss forex broker and one of the best in the business is CornerTrader.
Currency trades in pairs like the EUR/CHF and the USD/CHF, require a firm understanding of the most recent developments in forex Switzerland. When the Swiss National Bank (SNB) enacted its price floor against the Euro, markets moves to create some of the most stable forex trends in the currency market. This creates some excellent opportunities going forward if we know where to look.
Essentially, the SNB enacted its price floor in order to maintain price stability and to keep the value of its currency relatively low. This might come as a surprise to some (suggesting that a central bank would not want a high currency value) but this is actually something that happens quite often. Against the US Dollar, this would mean renewed weakness if the Federal Reserve starts to raise its interest rate levels. Higher interest rates tend to mean higher currency values so if this were to occur it would mean that we would be seeing significant differences in the central bank policies in both areas.
If you are looking for trend-based opportunities in the forex markets, this is definitely an area to watch. If you plan on opening a position in these areas, you will need to remain aware of the news events that are most critically influencing the region. There is no better way of doing this than to read the regular updates posted by Swiss forex brokers and the best option in this region is CornerTrader.