USDCHF (US Dollar vs Swiss Franc). Wisselkoers en online grafieken.

USD/CHF is one of the main currency pairs in trading. Owing to the strong US dollar and the perfectly steady Swiss franc, the trading instrument is very popular among market players. The pair’s exchange rate depends largely on the state of the US economy. For that reason, US economic indicators are of utmost importance when trading USD/CHF.

Switzerland’s economy and Swiss franc

Speaking of the Swiss franc, Switzerland’s economic strengths should also be mentioned. It is a highly-developed, wealthy, and export-oriented country. Its most advanced economic fields are the banking and insurance system.

Switzerland’s main banks, UBS and Credit Suisse, are known for their stability. Moreover, they are one the largest banks in the world.

The Swiss franc is the safe-haven asset investors turn to at the time of financial upheaval. It once again proves the reliability and strength of the Swiss economy.

There is little public data reflecting the current state of Switzerland’s economy. The monetary policy report of the Swiss National Bank is perhaps the only information available. For that reason, traders usually closely monitor reports on the Swiss economy.

Features of USD/CHF. Aspects of trading

When buying or selling USD/CHF, any trading approach can be used, depending on traders’ preferences. The pair can be traded using fundamental indicators, technical analysis, and indicator strategies.

USD/CHF is a predictable currency pair. Low volatility prevents traders from making a larger profit.

The pair’s peculiar feature is its responsiveness to changes in the global stock market. When trading the Swiss franc, it is important to remember the Swiss National Bank’s low rate policy and rare monetary policy interventions, as well as the currency’s similar behavior versus EUR and GBP.

Another interesting fact is that the Swiss franc shows an exponential increase against its counterparts at the time of crises when investors rush to transfer their capital to Switzerland. It is a distinctive feature of the Swiss economy.

At the same time, a decrease in Swiss exports to Western Europe could trigger a fall in CHF.

What is more, USD/CHF is less responsive to economic changes in Switzerland. The state of the US economy is what matters a great deal when trading the currency pair. Reports made by the US Federal Reserve are of major importance as changes in the interest rate could affect the quote.

Traders should also focus on labor market data in the US that is usually published on the first Friday of each new month.