With the Swiss National Bank keeping its 1.20 CHF per € cap, thereby killing CHF volatility, Swiss Forex brokers look to other products.
Leading Swiss retail forex broker Swissquote, a member of LeapRate’s Approved List of global regulated forex brokers, has added the Chinese Yuan (USDCNY), Brazilian Real (USDBRL) and Indian Rupee (USDINR) forex pairs to its list of tradable products. The INR and CNY are at all-time historical levels versus the US Dollar, providing a lot of interest among traders in these pairs.
As we recently reported, the Swiss National Bank (Switzerland’s central bank) has announced plans to keep its CHF 1.20 per Euro cap in place, and will not allow the Swiss Franc to strengthen below that level. That promises to continue the muted volatility in the CHF versus major currencies, which for nearly two years has been bad news for Switzerland’s leading retail forex brokers — Swissquote, MIG Bank, and Dukascopy — at least when it comes to domestic trading.
As a consequence, and not surprisingly, these brokers have spent most of their energies the past year expanding abroad. MIG Bank has opened an office in Hong Kong, while Swissquote has expanded to Malta and Dubai. Swissquote’s current move, adding more interesting currency pairs for its trading clients, is similarly aimed at giving their domestic and international traders something else to trade.
For more on the global Forex industry see the LeapRate-Dow Jones Forex Industry Report.