How to Trade AUD, NZD, CAD, and CHF - BK Forex€¦ · 06/02/2013 · Trading forex carries a high...
Transcript of How to Trade AUD, NZD, CAD, and CHF - BK Forex€¦ · 06/02/2013 · Trading forex carries a high...
How to Trade AUD, NZD,
CAD, and CHF
Kathy Lien & Boris Schlossberg
www.bkforexadvisors.com
Past performance is not indicative of future results. Trading forex carries a high level of risk, and may not be suitable for all
investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged
products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists
that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you
cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an
independent financial advisor if you have any doubts.
The information, including Commentary and Trade Ideas, provided on bkforex.com should not be relied upon as a substitute
for extensive independent research which should be performed before making your investment decisions. BKForex LLC and
bkforex.com are merely providing this information for your general information. The information and opinions presented do not
take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain
advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of
their trading to their personal risk appetite.
BKForex LLC will not be responsible for any losses incurred on investments made by readers and clients as a result of any
information contained on BKForex LLC. BKForex LLC do not render investment, legal, accounting, tax, or other professional
advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be
sought.
Six Webinars: Feb 13 - March 6
Four Weeks. Six 1 Hour Lessons. Online.
- AND -
LIVE Seminar: 9 March 2013
Full Day. Live in Sydney.
B
Webinar #1 Feb 13/14 - An Easy Guide to Understanding the Global
Economy - Macroeconomics 101
Webinar #2 Feb 18/19 - The Fundamentals that REALLY Move Markets
Webinar #3 Feb 20/21 - How to Predict Economic Data Better Than
Wall Street
Webinar #4 Feb 25/26 - Peek Over Our Shoulders - A Private Tour of
Our Trading Screens
Webinar #5 Feb 27/28- How to Trade the EUR, USD, GBP, JPY
Webinar #6 March 4/5- How to Trade the AUD, NZD, CAD, CHF
B
One Seminar: 9 March 2013
9am – 5pm
B
11 Jamison St Sydney NSW 2000, Australia
B
Agenda
Every Currency Pair is Unique,
Here is Why…
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Australian Dollar
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Background • Symbol A$
• Nickname - Aussie
• AUD is 5th Most Actively Traded Currency
(7.6% of total daily turnover)
• AUD/USD is the 4th Most Actively Traded Currency Pair (6% of total
daily turnover)
• Highest Interest Rate of G20 Countries
• Export Dependent Economy
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Central Bank • Reserve Bank of Australia (RBA)
• Mandate: Low and Stable Inflation (1 to 3% Target)
• Created: 1959
• Central Bank Governor: Glenn Stevens
• Frequency of Central Bank Meetings/Year: 11
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Economic Statistics
• 2011 GDP: AUD 1.507 trillion (1/10th Size of US)
World’s 13th Largest Economy
• Population: 22,015,576 (Less than California)
• Unemployment Rate* 4.9%
• Interest Rate 3.75%, Inflation 1.6% (Q1), Trade Balance** -1.59
Billion
• *As of May 2012
• **As of March 2012
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
More Details ….
Most Important
Export Partners
• China (25.1%)
• Japan (18.9%)
• South Korea (8.9%)
• India (7.1%)
• USA (4%)
• *As of 2010
Main Industries
• Services: 70.4%
• Industry: 25.6%
• Agriculture: 4%
• As of 2011
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
What Do They Sell?
• World’s #1 Exporter of Coal (35% of Intl Trade)
• Iron Ore Accounts for 20% of Total Exports
• Coal Accounts for 16% of Total Exports
Other main exports include:
• Gold, Crude Petroleum, Natural Gas
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Australia
1. Employment = Employment Change (Part Time vs. Full Time)
2. Retail Sales = Retail Sales
3. PMI = PMI Manufacturing & Services
4. Inflation = Quarterly Consumer & Producer Prices (CPI/PPI)
5. GDP = GDP
6. Trade = Trade Balance
7. Confidence = Westpac Consumer Confidence
8. Central Bank Meetings & Minutes = RBA Meeting, Minutes
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Most Active Trading Hours
• 7:00 PM ET / 23:00 GMT Tokyo Open
• 7:30 PM ET / 23:30 GMT AUD Economic Releases
• 8:30 AM ET / 12:30 GMT US Economic Releases
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
AUD Trading Tips
Correlation with Commodity Prices
High Interest Rate, High Beta Currency
Particularly Sensitive to Chinese Data
Carry Trade Demand
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
New Zealand Dollar
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Background • Symbol NZ$
• Nickname - Kiwi
• NZD is 10th Most Actively Traded Currency
(1.6% of total daily turnover, behind SEK and HKD)
• Typically the Second Highest Interest Rate of G20 Countries
• Export Dependent Economy
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Central Bank
• Reserve Bank of New Zealand (RBNZ)
• Mandate: Maintain Stability and Efficiency of Financial
System
• Created: 1934
• Central Bank Governor: Graeme Wheeler
• Frequency of Central Bank Meetings/Year: 8
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Economic Statistics
• 2011 GDP: NZD 135 billion
Fourth Smallest of the 30 OECD Countries
• Population: 4,432,017 (Half of NYC)
• Unemployment Rate 6.7% (Q1)
• Interest Rate 2.5%, Inflation 1.6% (Q1), Trade Balance* 134 Million
**As of March 2012
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
More Details ….
Most Important
Export Partners
• Australia – 23.1%
• China – 11.2%
• USA – 8.6%
• Japan – 7.8%
• *As of 2010
Main Industries
• Services – 71.3%
• Industry – 24%
• Agriculture – 4.7%
• As of 2011
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
What Does the Economy Rely On? • Dairy Products – 24.90%
• Meat – 11.59%
• Wood – 6.67%
• Oil – 4.64%
• Fruit – 3.51%
• Mechanical Machinery & Equipment – 3.79%
• Fish – 2.84%
• Aluminum – 2.59%
• Wine – 2.35%
• Electrical Machinery & Equipment – 2.30%
• *As of 2011
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
New Zealand
1. Employment = Employment Change (Quarterly)
2. PMI = Business PMI and Performance of Services
3. Inflation = Quarterly Consumer & Producer Prices
4. GDP = GDP
5. Trade = Trade Balance
6. Central Bank Meetings & Minutes = RBNZ Meeting
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Most Active Trading Hours
• 7:00 PM ET / 23:00 GMT Tokyo Opens
• 7:30 PM ET / 23:30 GMT NZD Economic Releases
• 8:30 AM ET / 12:30 GMT US Economic Releases
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
NZD Trading Tips
Strong Correlation with AUD
Correlation with Commodity Prices
High Interest Rate, High Beta Currency
Carry Trade Demand
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Canadian Dollar
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Background • Symbol C$
• Nickname - Loonie
• CAD is 7th Most Actively Traded Currency
(5.3% of total daily turnover)
• USD/CAD is the 6th Most Actively Traded Currency Pair
(5% of total daily turnover)
• US Consumes 80% of Canadian Exports
• Ninth Largest Oil Exporter in the World
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Central Bank • Bank of Canada (BoC)
• Mandate: Price Stability – Keep Inflation Near 2%
• Created: 1934
• Central Bank Governor: Mark J. Carney
• Frequency of Central Bank Meetings/Year: 8
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Economy Statistics
• 2011 GDP: USD 1.75 Trillion
• Population* 34,108,752
• Unemployment Rate** 7.3%
• Interest Rate 1.00%
• Inflation*** 2.00%, Trade Balance**** 350M
*As of May 2012
• **As of April 2012
• ***As of April 2012
• ***As of March 2012
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
More Details ….
Most Important
Export Partners
• USA - 74.9%
• UK - 4.1%
• *As of 2010
Main Industries
• Services – 71%
• Industry – 27.1%
• Agriculture – 1.9%
• As of 2011
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
What Does the Economy Rely On?
• Industrial Goods and Materials – 25.09%
• Energy Products – 24.96%
• Machinery and Equipment – 17.47%
• Agricultural and Fishing Products – 8.96%
• *As of 2011
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Canada
1. Employment = Net Change in Employment (Part vs. Full Time)
2. Retail Sales = Retail Sales
3. PMI = IVEY PMI
4. Inflation = Consumer Prices (CPI)
5. GDP = GDP (Monthly and Quarterly)
6. Trade = Trade Balance
7. Central Bank Meetings & Minutes = BoC Meeting
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Most Active Trading Hours
• 7:00 AM ET / 11:00 GMT CAD Economic Releases
• 8:30 AM ET / 13:30 GMT US Economic Releases
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
CAD Trading Tips
USD/CAD Doesn’t Always Rise in Good US Data!
Reaction to US Fundamentals
Delayed Reaction to CAD Data
Correlation with Oil Prices
Risk Currency
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Swiss Franc
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Background
• Symbol ₣
• Nickname - Swissie
• CHF is 6th Most Actively Traded Currency
(6.4% of total daily turnover)
• USD/CHF is 7th Most Actively Traded Currency
(4% of total daily turnover)
• Financial Services, Banking Industry
• Has One of the Highest Per Capita Incomes in the World
• Chemicals are Switzerland’s Main Exports
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Central Bank • Swiss National Bank (SNB)
• Mandate: Price Stability – Inflation Target of Less than 2%
• Created: 1907
• Central Bank Governor: Thomas Jordan
• Frequency of Central Bank Meetings/Year: 4
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Economic Statistics • 2011 GDP: $340.5 billion
• Population* 7,655,628
• Unemployment Rate** 3.1%
• Interest Rate 0.25% Target Range
• Inflation** -1.0%
• Trade Balance** CHF 24.16 Billion
*As of May 2012
** As of April 2012
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
More Details ….
Most Important
Export Partners
• Germany – 19.2%
• U.S. – 10.2%
• Italy – 7.9%
• France – 7.7%
• U.K. – 5.9%
• *As of 2010
Main Industries
• Services – 71.3%
• Industry – 27.5%
• Agriculture – 1.2
As of 2011
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
What Does the Economy Rely On?
• Chemicals – 37.8%
• Watches & Jewelry – 20.8%
• Machinery -18.7%
• Metals – 6.6%
• Agricultural products – 4.2%
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Switzerland
1. Central Bank Meetings & Minutes = Quarterly SNB Meeting
2. Inflation
3. Unemployment
4. UBS Consumption Index and KoF Leading Indicators
CHF Data Doesn’t Really Matter,
but these are the most important releases
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Most Active Trading Hours
• 3:00AM ET / 8:00 GMT London Open
• 1:45AM ET / 6:45 GMT Swiss Economic
Releases
• 8:30AM ET/ 13:30 GMT US Economic Releases
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
CHF Trading Tips
Swiss National Bank Prone to Intervention
Formerly a Safe Haven Currency (Could Resume?)
Does Nearly All its Trade with EZ
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Questions
Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as
well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The
possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to
lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any
doubts.
Past performance is not indicative of future results. Trading forex carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade any such leveraged products you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading on margin, and seek advice from an independent financial advisor if you have any doubts. The information, including Commentary and Trade Ideas, provided on bkforexadvisors.com should not be relied upon as a substitute for extensive independent research which should be performed before making your investment decisions. BKForex Advisors LLC and bkforexadvisors.com are merely providing this information for your general information. The information and opinions presented do not take into account any particular individual’s investment objectives, financial situation, or needs. All investors should obtain advice based on their unique situation before making any investment decision and should tailor the trade size and leverage of their trading to their personal risk appetite. BKForex Advisors LLC will not be responsible for any losses incurred on investments made by readers and clients as a result of any information contained on BKForex Advisors LLC. BKForex Advisors LLC do not render investment, legal, accounting, tax, or other professional advice. If investment, legal, tax, or other expert assistance is required, the services of a competent professional should be sought.