One of the most difficult aspects of trading the forex market is accounting for geopolitical risks. Ever since the terrorist attacks on the U.S. and the start of the Iraq war, the U.S. dollar has been the riskiest currency from a geopolitical perspective.

On the opposite end of the spectrum is the Swiss franc (CHF), which is the safe haven currency that forex traders rush into anytime there's a terrorist attack, outbreak of war, or even the perceived threat of military action.

I'm extremely surprised to see the CHF lower across the board today with the news out of Iran. In case you missed it, have a quick glance at this article from the International Herald Tribune:

Iran Reportedly Test Fires 9 Missles

Indeed, Bloomberg is running a story that blames the dollar's weakness on Iran's actions:

Dollar Falls Most Against Euro in Week as Crude Oil Prices Rise

The strange thing, at least to me, is that the CHF isn't really budging. For example, the USD/CHF is down a mere 30 pips from yesterday's close. In fact, the EUR/CHF and GBP/CHF are higher!

Look at this daily candlestick chart of the EUR/CHF. Does it seem like forex traders are fearful of  Iran's war games? The EUR/CHF should be a lot lower if traders were fearful.

EUR/CHF Daily Candlestick Chart

There's something more to today's action in the forex market. I would go so far as to label today's trading as "strange". The dollar is down big versus the commodity currencies, which looked like good shorts yesterday. But not so today.

Meanwhile, the forex market is almost yawning at the news out of Iran. It's odd.

I don't quite yet know what to make of it, but such disconnects generally provide some opportunity for profit. Stay on your toes over the next couple of sessions and focus on taking small, calculated risks.