Learn how negative interest rates influence the forex market and currency futures and discover a trade setup involving the Swiss franc (/6S) and the euro (/6E) when negative interest rates are used.
The world's largest market is the sport foreign exchange market (forex). This market is largely influenced by monetary policy and recently, negative interest rates have been used as a tool to drive exchange rates. Countries will lower or create negative interest rates in order to lower demand for currency. One such example of a currency is the Swiss franc, meaning that anyone who wants to put their cash into Swiss francs will have to pay to do so. With this in mind, coupled with the fact that the Eurozone is aiming to stimulate economic growth, tastytrade presents some futures trades that will take advantage of the spread between the Swiss franc and the euro.