Experts point out that the Swiss franc will be the best currency for savings in the next few months. Switzerland is a country with a stable economy. Therefore, neither the virus pandemic nor political disagreements will affect the country's currency.
Non-EU countries often emphasize stability of their currencies, for example, the Swedish krona, the Swiss franc, and the Danish krone. They even outpace the euro in growth. Still, the Swiss franc will be more persistent in the long term, as experts say.
Other currencies, including the euro, may lose popularity due to problems in the EU economy, the threat of a second wave of coronavirus, the US hostility, and so on.
The US dollar is directly dependent on the political situation, which may worsen after the US presidential election. Moreover, the currency is unstable due to the Fed's ultra-soft monetary policy and civil unrest in the country. These reasons give confidence and stability to the Swiss franc.
However, today the US dollar is stable against the euro and the yen. But how long will this last?
The pound sterling is depreciating against the US dollar amid growing doubts that the UK will be able to reach an agreement with the EU in the near future. A trade agreement with the EU must be concluded before October 15, otherwise it simply will not exist, said British Prime Minister Boris Johnson. The pound sterling fell by 0.21% against the US dollar to $1.3139
EUR/USD is trading at $1.1814.
USD/JPY is trading at 06.26, while EUR/JPY is at 25.53.
The US dollar against the yuan increased by 0.1% to 6.8343 yuan.
The ICE US dollar index, which measures the US dollar against a basket of six major currencies, added 0.5% during the trading.
On Monday, Donald Trump said that in case of his victory in the US presidential election, he would sever ties between the US and China. In a press conference, Trump said that America would become a manufacturing superpower. The US leader wants to stop being dependent on a rival country. Is it reasonable? Given the current economic situation, it is not.
The pandemic has caused enormous damage to the global economy. That is why there is a possibility of a more protracted and deeper crisis. In addition, difficult political relations between some countries only dramatize the situation. Thus, emerging currencies may remain under pressure throughout the year. Therefore, analysts advise traders to invest in the Swiss franc.
