Swiss Interest rate a buy opportunity?

2moro the Swiss are expected to raise interest rates by .25%, inlight of global risk aversion by investors to move into safer investments like bonds, forex investor move to safer more stable currencies. I think the USDCHF is lookin BEARY nice for a short. The chart was also showing negative divergance, ontop of that with a higher interest rate means higher demand for the swissy further pushin that usdchf pair down, given extra juice from dissapointing us retail sales data.

Some advice ? or anything i need to be corrected on please do post :slight_smile:

My only piece of advice is to not assume for even a second that the market hasn’t already priced in the prospects for a Swiss rate move. If you trade the announcement, it’s pretty much the same as putting on a trade before a data release. In otherwords, you’d be gambling more than trading.

Ok cool. I do understand that just i have access to that info so does every1 else an it certainly will have been factored into the prospects, but how would you recommend one trades fundamental data releases ? or do u personally not recommend trading fundamentals ?
I generally use technicals to trade and has so far served me well, i haven’t traded data releases yet as i was unsure how to take them.


mmmmm … cant really believe my luck that i got advice from such an experienced trader :slight_smile: its really nice to know that 1 is able to get pro advice here at babypips, really cool thanks !!

Trading data releases is not the same as trading on the fundamentals. The latter is evaluating economic factors to determine value and future market direction. The former is trading the reaction of traders to the results of the release, which may or may not have anything to do with the longer-term fundamental outlook.

I see what u mean (sorry I’m a bit slow:o ), my view was not so definitive I am glad i did not trade data releases b4 then could got me in sum trouble. thanks so much for your advice.

I got to pay 3 x more in South Africa for your book (± $105), however certainly worth the info and the 15 day delivery period.


Wow! That’s a hefty price tag.

Hope you find the book very useful.

Swiss National Bank interest rate decision delayed. SNB announced that the interest rate decission scheduled for 8.30 GMT will be released at 13:00 GMT, newslerfx says.