Swiss Franc: Debasement unwind points to losses versus US Dollar – ING

💡 DMK Insight

Last year’s USD debasement trade boosted the CHF, Gold, and Bitcoin, but a hawkish Fed could flip that script. Traders should be wary of how shifts in Fed policy impact these assets. If the Fed signals a tighter monetary stance, we could see a strengthening USD, which historically pressures Gold and Bitcoin. The recent trends suggest that the CHF may also lose its appeal as a safe haven. It’s crucial to monitor Fed communications closely, especially any hints about interest rate hikes or tapering. For Bitcoin, watch for support levels around recent lows; a breach could trigger further selling. On the flip side, if the Fed maintains a dovish stance, the previous trends could re-emerge, providing opportunities for those positioned in Gold and Bitcoin. Keep an eye on economic indicators like inflation rates and employment data, as they could influence the Fed’s decisions and, consequently, these asset classes.