. It and the secrecy of the banking system are Switzerland's main strengths. As a result, Switzerland's status as a safe haven is constantly strengthening. The Swiss franc's volatility follows external events rather than domestic economic conditions. Due to Switzerland's political neutrality, the Swiss franc is regarded as the world's first safe haven currency. When the world is unstable or uncertain, investors usually need to pay more attention to capital preservation rather than capital appreciation. At this time, no matter whether the economic situation is good or not, funds will flow into Switzerland, causing the appreciation of the Swiss franc. In this paper, the author analyzes the characteristics of; "> Switzerland is the fourth largest official holder of gold in the world. Switzerland's past constitution stipulated that the currency must be backed by 40% of its gold reserves. Although the law has been repealed, the link between gold and the Swiss Franc has remained deep in the minds of Swiss investors since then. As a result, the Swiss franc and gold have a positive correlation coefficient of nearly 80%. The price of gold is going up, and the Swiss franc is likely to go up as well. Moreover, since gold is seen as the ultimate form of money, both gold and the Swiss Franc benefit when the global economy and geopolitics are in doubt.

arbitrage trading effect

in the past few years, the Swiss Franc has been one of the currencies with the lowest interest rates in major industrial countries and one of the most commonly used currencies for carry trade. The rising market risk sentiment will encourage investors to actively seek high-yield assets, and then carry trade will prevail. Carry trades are usually carried out between cross currency pairs, for example, GBP / CHF or aud / CHF, however, they affect EUR / CHF and USD / CHF. Investors need to buy the Swiss Franc if they want to close the carry trade. , 0, 0); "> the spread between the three-month European Swiss Franc futures and the European dollar is widely concerned by the professional traders of the Swiss franc. Because this spread reflects how much yield premium fixed income assets in the United States can provide compared with fixed income assets in Switzerland, and vice versa, these differences are good indicators of potential capital flows. Since investors are always looking for the assets with the highest yield, the interest margin provides traders with the possibility of potential currency fluctuations. This is particularly important for carry traders, who build positions and close positions based on positive interest rate differences between fixed income assets around the world.

merger and acquisition activities

the main industries in Switzerland are banking and finance. In these industries, merger and acquisition activities are very common, especially in the whole industry. As a result, these acquisitions have a significant impact on the Swiss franc. If foreign companies buy Swiss banks or insurance companies, they have to buy the Swiss franc and sell their local currency. On the other hand, if Swiss banks buy foreign companies, they need to sell them like wolves and buy foreign currencies. In either case, it is important for Swiss traders to keep an eye on M & A announcements involving Swiss companies. In this paper, the author analyzes the characteristics of; "> for traders who want to participate in the fluctuation of the Swiss franc, the most commonly used currency is euro / Swiss franc. Due to its high illiquidity and volatility, USD / CHF trades less frequently. However, as dollar / Swiss franc is more volatile, day traders usually prefer to trade dollar / Swiss Franc rather than euro / Swiss franc. In fact, dollar / Swiss franc is only a composite currency pair from euro / dollar and euro / Swiss franc. Market makers or professional traders usually use these cross currency pairs as a leading indicator of the dollar / Swiss franc, or use them to price the dollar / Swiss Franc when the currency is relatively illiquid. In theory, the dollar / Swiss Franc exchange rate should be exactly equal to the euro / Swiss Franc divided by the euro / US dollar exchange rate.