Swiss Franc Offers Best of Both Worlds for Hedging U.S. Election
- Franc hasn’t crashed since Brexit vote despite gains in stocks
- Swiss currency reached its highest level since June this week
Finding Opportunities in the Currency Markets
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The Swiss franc is shaping up to be the perfect hedge for investors wanting to guard against U.S. election volatility.
Brexit shows the currency to be a win-win proposition, according to analysts at UBS Group AG, Switzerland’s biggest bank. If Donald Trump is victorious -- a prospect not relished by markets because of his protectionist views -- then the franc would likely appreciate. It’s traditionally favored as a port in a storm because of the nation’s current-account surplus.