I would suspect this relationship would have been stronger if the Swiss/Gold referendum was passed back in November 2014 to bring up SNB reserves to 20%. Here is the chart:
Gold – Red Line
Chief Currency Strategist
Disclaimer: I am short CHF
The USD/CHF is testing key resistance at the .9530 level. The reason why this level is so critical is that since the Swiss National Bank (SNB) EUR/CHF floor removal, the investment community has no clear reference of what the low price was on January 15, 2015 following the unprecedented move of the SNB. I have heard quotes as low as .73XX to .85XX and as you can see my charts show a low of just below .8000. Therefore our only good points of reference are previous lows as we are testing now.
With less retail and institutional investors dabbling with anything involved with “CHF” the path higher (lower CHF) may meet less resistance should we break .9530. Ironically, this is exactly how the SNB wanted to see this play out, a slow grind lower in the CHF.
Chief Currency Strategist, Wizetrade
Disclaimer: I am currently long USD/CHF and may add to that position in the coming day(s)