As Macron noted, this trading week initiates what many call the new world disorder – “A world without rules”.
This shift arguably began with Russia’s invasion of Ukraine, but the precedent has only deepened. With Trump landing in Davos tomorrow for the WEF, global leaders are voicing strong concerns about the current geopolitical landscape.
The latest Board of Peace initiatives from the Trump administration appear designed to further sideline the UN.
Consequently, the US Dollar is facing further rejection as market participants diversify away from erratic US policies. Confidence in the Greenback as a stable reserve currency is eroding as fears from 2025 materialize.
These fears include tariffs, provocations against allies, and attacks on Federal Reserve independence. Despite the US Economy’s and Fed’s resilience, capital is flowing away from the Dollar.
Gold hit new record highs this morning (to $4,750) as a direct beneficiary.
Conversely, the Japanese Yen remains in a steep downtrend driven by debt burdens and rising yields, hence it can’t really sustain its safe-haven reputation.
In this environment, the Swiss Franc has emerged as the primary safe haven.
With SNB rates at 0%, it is also becoming a target for the carry trade. As risk assets like stocks and crypto face rejection alongside the Dollar, the Franc is up another 1% in today’s session.
Let’s explore the multi-timeframe chart analysis for USD/CHF to see where these flows might take the high-volume traded pair.
