The CHF as well as the JPY are generally considered as safe havens in the FX space. They appreciate in times of risk-off sentiment and depreciate when the mood is positive.
Trump yesterday surprised with worse than expected reciprocal tariffs that triggered a wave of risk-off flows on expectations of a global slowdown.
On the 4 hour chart below, we can see that Trump's announcement was the catalyst that triggered the move and once the pair broke out of the month-long range, the sellers piled in more aggressively.
This is a sellers' market, so there's no need to catch a falling knife, especially without any positive catalyst. It's hard to find something positive for the pair though. Some hawkish comments from the Fed or much better than expected US data might provide a pullback, but that will likely be an opportunity to sell again at better prices.
This article was written by Giuseppe Dellamotta at www.forexlive.com. Read More Details
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