How to Trade the Swiss Franc Now
The Swiss franc bounced after the Swiss National Bank president resigned, and this strategist sees a selling opportunity.
The Swiss National Bank has done a nice job of keeping the Swiss franc in check, but the resignation of the bank's president on Monday created enough uncertainty that investors again jumped into the safe-haven currency.
The resulting bounce is a nice selling opportunity, says Amelia Bourdeau, director of foreign exchange at Westpac Institutional Bank.
"Swiss franc being a safe haven, any time there's uncertainty it strengthens," she told CNBC's Melissa Lee. "Now is the time to take advantage of this move that we saw."
Bourdeau wants to sell the Swiss franc against the New Zealand dollar, a commodity currency, because improving U.S. economic data should improve risk appetite, and the chance that the Federal Reserve might stand pat on interest rates longer than expected should also help.
She is looking for a target of 0.7750 and she would put a stop at 0.7350.
You can watch the discussion in the video.
MULTI CURRENCIES v The Dollar
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