One of the most reliable and predictable assets on the market is the Swiss franc. This is exactly what people are looking for as opposed to risky investments in times of instability.
The Swiss currency is popular in Forex and has occupied there in recent years about 1/20 of the total world turnover. By this indicator, it rivals the Canadian dollar, with which it shares 5th and 6th place.
Each smaller Forex broker offers traders currency pairs with Swiss franc. Most often he trades with the Euro and the U.S. dollar, still popular are pairs with the Japanese yen, British pound, dollars of Canada, Australia, New Zealand.
Price movements in these currency pairs are highly predictable and stable compared to other currencies. Due to this, trading with them is chosen by traders who are inclined to minimize risks in their work. But there is also the reverse side of the coin - the spread in pairs with the franc is increased. It is easier to predict, but you also have to pay more for it.
GENERAL SITUATION IN THE COUNTRY'S ECONOMY
The demand for the Swiss franc in trading is primarily due to the general situation in the state economy and its political status. Their country has been forming for centuries, remaining committed to its unshakable principles - stability, reliability, high quality. And this applies to everything that Switzerland embodies today in the eyes of people around the world, be it watches, banks or the political system. Thus, while for centuries in Europe were raging crises, changing power and redesigning the map, Switzerland has existed there since 1291, and still maintains a confederative system. And the state has not participated in wars since 1815. On the other hand, all this time business has been developing there in a calm environment. This image is very favorable for finance on a fundamental level.
There is hardly a country in the world where the confidence in the future is higher. It is ensured by an extremely conservative in all respects policy of the authorities, which does not provide for sharp changes and deep reforms. Clients of the same banks know that the state will not interfere in the control over their deposits. Banking secrecy is inviolable in Switzerland, although this is not the case in many other countries, whose citizens often hide illegally obtained money in their homeland.
CURRENCY PROSPECTS
Even in times of turmoil in the financial markets, the economic policy of the Swiss authorities allows to keep the franc rate from sharp fluctuations. In trading, this makes it easier to make forecasts. Thus, the rate of the national currency did not fail during periods of decline in the country's GDP, which also happened in the foreseeable past.
If in trading the Swiss franc gives an opportunity to earn on itself at the expense of volatility on short periods of time, it is not less good at investing. The unshakable financial stability of the state allows us to hope for growth with long-term investments.
In the future, the Swiss franc will undoubtedly continue to maintain its position in global currency trading. The authorities' economic policy, which remains conservative, will contribute to this.