USD/CHF: back to politics
In the last two months of 2016 the dollar rallied over the USD/CHF thanks to Mr. Trump’s election and Ms. Yellen’s decision to increase the FED interest rate (forecasting three more increases in 2017). In January 2017, the dollar pushed back due to a new American protectionism, hinted first and then declared by Mr.Trump in his inauguration speech: “Buy American, Hire American”.
The dollar first went up to a 1.0330 area (from 0.97/0.98 area) and then back to 1.0010 on January 20th, Inauguration Day, after having tested the parity on Tuesday the 17th. This coming week the parity will probably be tested again, and the turning point from buying to selling will again depend on Mr. Trump’s moves. After a long time during which Central Banks were market movers, International policy makers are back on deck.