The Financier The Financier | Page 32

Finally, considering that the Swiss franc is the sixth most traded currency in the world, according to data from the Bank of International Settlements (BIS), due to its geographical proximity and high volumes of trade with the EU, having cross currency with Swiss franc offers a unique opportunity to position oneself on the fundamentals of Eurozone growth without exposure to its structural problems. During times of economic or political turbulence in the EU, the franc is often seen as a haven of capital. Furthermore, the mechanisms behind the carry trade make the Swiss franc a common way to observe and express an opinion on trends of market sentiment. Since the currency falls frequently when markets are broadly optimistic and gains in times of turbulence, it can serve as a useful vehicle for balancing general market mood swings. These are the currency pairs of Swiss franc CHF commonly traded with a trend related to financial markets excluding CHF / JPY which has an inverse correlation: USD / CHF AUD / CHF CAD / CHF EUR / CHF GBP / CHF NZD / CHF  CHF / JPY