CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Disclaimer

Our systems have detected that you are using a computer with an IP address located in the USA. If you are currently not located in the USA, please click “Continue” in order to access our Website.

Local restrictions - provision of cross-border services

Swissquote Ltd is authorised and regulated in the UK by the Financial Conduct Authority (FCA). Swissquote Ltd is not authorised by any US authority (such as the CFTC or SEC) neither is it authorised to disseminate offering and solicitation materials for offshore sales of securities and investment services, to make financial promotion or conduct investment or banking activity in the USA whatsoever.

This website may however contain information about services and products that may be considered by US authorities as an invitation or inducement to engage in investment activity having an effect in the USA.

By clicking “Continue”, you confirm that you have read and understood this legal information and that you access the website on your own initiative and without any solicitation from Swissquote Ltd.

If cookies are currently disabled on your computer, you will be required to continue accepting this legal information for every new page visited on this website. In order to avoid this, please enable cookies on your computer.

Research Market strategy
by Swissquote Analysts
Daily Market Brief

Swissie strengthens due to low trading activity

1

Swissie strengthens due to low trading activity

By Vincent Mivelaz

Thanksgiving seems to start on a high note at first sight following the release of a positive GDP revision for third quarter that pictures a stronger US economy. Yet US President Donald Trump signature of the Hong Kong Human Rights and Democracy Act favors a risk-off environment, with safe-haven yen gaining traction in anticipation of Beijing retaliation measures. Accordingly, USD/CHF trades slightly lower in close trading, currently trading below mid-October level and below par since mid-June 2019. Despite limited market activity due to the US National Day, risks of bumps and dumps are high, as major events can have serious repercussions, especially with thinner liquidity.

The release of firmer 3Q GDP growth second estimate at 2.10% compared to first estimate at 1.90% is confirming a more upbeat US economy, which combined with stronger labor data, supports the optimistic view of Fed Chairman Jerome Powell that further easing is not planned at current time. On the same line, Switzerland 3Q GDP quarter-on-quarter and year-on-year figures posting at 0.40% (prior: 0.30%) and 1.10% (prior: 0.20%) respectively due to rising output in both pharmaceutical and energy industries, reinforces the view that the Swiss National Bank is not expected to move so far.

 
Live chat