The Strong Swiss Franc May Last Through the End of the Year| KOL Forex Analysis•Jasper Lo

With a glance at July, it is found that some currencies of major industrial countries, which plummeted in the first half of 2020, have rallied in different degrees. Among them, both EUR and AUD have turned their six-month negative inflation into positive one. The main reason is the boom in global stock markets arising from unprecedented quantitative easing implemented by central banks worldwide since March. This forces USD, a currency tending opposite against U.S. stocks, to constantly decline, providing chances for weak currencies to rebound at different levels.

From this January till now, only CHF and JPY crowned winners for the whole journey. As of July 27, SEK has become the best performer, with an increase of 5.9%; followed by CHF, rising by 5.1%; while JPY has ranked sixth, with a gain of 2.3%. Under the premise that USD will stay weak in the short term, I will expect a strong CHF with constant buoyancy in the future forex market. CHF is the most stable one for me because there are latent risks in EUR, GBP and the commodity currencies of AUD, NZD and CAD .

With a glance at July, it is found that some currencies of major industrial countries, which plummeted in the first half of 2020, have rallied in different degrees. Among them, both EUR and AUD have turned their six-month negative inflation into positive one. The main reason is the boom in global stock markets arising from unprecedented quantitative easing implemented by central banks worldwide since March. This forces USD, a currency tending opposite against U.S. stocks, to constantly decline, providing chances for weak currencies to rebound at different levels.

From this January till now, only CHF and JPY crowned winners for the whole journey. As of July 27, SEK has become the best performer, with an increase of 5.9%; followed by CHF, rising by 5.1%; while JPY has ranked sixth, with a gain of 2.3%. Under the premise that USD will stay weak in the short term, I will expect a strong CHF with constant buoyancy in the future forex market. CHF is the most stable one for me because there are latent risks in EUR, GBP and the commodity currencies of AUD, NZD and CAD .

USD and JPY can play the role of safe haven only when stock markets suffer from sharp loss. Currently, stock markets stay uptrend despite of the global tension. Thus, investments may flow from U.S. to Switzerland for safe haven, encouraging more CHF purchases. In view of this, CHF is possible to achieve the 2015 high of 0.9071 before adjustment. But even it is adjusted, I hold that CHF will keep climbing to another high of 0.8700 in the second half of the year.

Finally, we should pay attention to DXY as well. On the one hand, it has been in highly oversold territory; on the other hand, it may see a retaliatory rebound if the risk hedging of USD takes effect again due to the slump in global stock markets arising from tension.

[About The Author]

Since 1987, Jasper Lo has been engaged in the financial industry

(forex, futures and gold) for more than 32 years and holds forex R.O.,

securities and futures broker licenses. Mr Lo is an expert in trading

forex, precious metals and commodity futures and an basic and technical

analyst.

Over the years, Mr Lo won many individual and team sales champion

awards, as well as outstanding employee awards. He was invited, as a

guest mentor, to the University of Hong Kong, Guangdong Ocean University

and Guangzhou Jinan University. And he was also appointed as the chief

training consultant by Hantang Securities and Dongguan Securities in

China.

Mr Los experience as guest of honor invited by media including Chinese and English newspapers and columnist:

-Guest of honor invited by TVB New Channels such as Finance Channel, Forex Focus, Global Watch

-Guest of honor invited by Now Finance Channel - Forex Reports

-Guest of honor invited by i-CABLE Finance Info Channel - Forex Opportunities

-Guest of honor invited by ViuTV - Investor Smarter Group

-Columnist of Finance and Forex Market of Ming Pao

-Presenter of Finance and Forex Forecast of Ming Pao

-Presenter of Investment 36 Stratagem and Technical Analysis in 1 Min of Ming Bao Finance

-Appointed lecturer of Ming Pao Investment Seminar and Paid Course

-Author of the best seller Investment 36 Stratagem

-Columnist of Forex Expert, Forex Analyst, Marathon Weekly of ET Net

-Guest of honor of Open Good Morning of ET Net

-Guest of honor of Metro Finance Channel - Market Opening, Instant

Market Fighting, Guangdong-Hong Kong Finance, Finances Power, Market

Analysis

-Guest of honor of New Era of Investment of RTHK

-Columnist of Capital Commodities of Capital Weekly

-Guest Presenter of Wang Guanyi Online Finance Channel - Fund and Commercial Bond

-Columnist of Wealthub Finance and Investment Smart Platform of Enrich Culture

-Guest presenter of Weekly Investment in the World of Enrich Culture

Flash

Event! Download WikiFX App now and sign up, youre gonna get a 6-month

WikiFX VIP membership worth of US$9 and the latest WikiFX global

e-Magazine for free. Contact support@wikifx.com with title [For

Download Rewards+ your wikifx ID]. We will reply you within 3 days.

WikiFX,

a third-party forex broker inquiry platform, has collected the

information of 19,000+ forex brokers, 30 regulators, and helped victims

recover over 300,000,000.00 USD. WikiFX App provides functions like

forex brokers inquiry, calender, forex news express, calculator and

other trading tools to help you get trading done with ease.

Forex

brokers inquiry: in order to create a safe forex trading environment,

WikiFX offers you two methods of checking the compliance of forex

brokers, online checking and offline investigation report. WikiFX has an

independent inspection team, conducting on-spot visit to brokers

offices to identify they are trustworthy or not.

Forex calender: the financial events which may affect forex trading

Forex news express: providing you the latest info anytime and anywhere

Forex

forum: tons of posts by WikiFX users, containing technical analysis,

industry discussion, fraud brokers exposure; Users can exchange their

thoughts here freely.