Unsurprisingly we’re seeing the volatility continue and CHF pairs are once again the proverbial burning potato
Of the core pairs EURCHF has rallied to 1.0206 before capping ( oops, inappropriate word to use right now ) for the moment and we’re currently1.0175 while USDCHF has risen to 0.8774, currently 0.8749
Remember that if you are going to keep trading CHF pairs then the volatility and wider spreads will remain for some time and extreme caution is advised
CHF pairs have never been big on liquidity and a lot of yesterday’s moves can be attributed to a simple lack of price. Not ideal I know but sadly part of the forex market landscape for a long while. I wrote this yesterday to higlight the vagaries of stop-losses and market-making
Early in my price-making interbank career the notion of reciprocity between traders was key and essential to the market working efficiently, but by the time I left the City there very few market makers who cared for such good practice. And even less now as the play-station generation get trigger-finger happy and try to out-gun each other like some glorified gaming session
As i said yesterday volatility brings opportunity but it can also bring carnage. The market has been given a stark reminder of that
