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The outlook for the Swiss National Bank & the Bank of Japan is really quite different.The Bank of Japan is expected to exit its negative interest rate policy and start hiking rates around spring 2024. The Swiss National Bank is expected, by short-term interest rate markets, to stop hiking rates with its inflation at 1.7%. So, this is currency trading 101 – the JPY should strengthen on expectations of the BoJ hiking rates and the CHF should weaken as expectations fade for further SNB hikes. Does this mean a CHFJPY sell bias makes sense? Well, hold on!The seasonals for the CHFJPY are extremely strong into the end of the year with an average return of 2.57% and a 70+ winning trade percentage. So, should this be a reason for pausing on CHFJPY shorts and looking at them in the New Year when the seasonals favor CHFJPY selling?The major trade risk here will be from the two central banks and the incoming inflation data. Will the rate divergence be maintained?Video Length: 00:02:36More By This Author:Going For Gold?
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