USD/CHF

    By
    Andrey Orlov
    -
    0

    USD/CHF is a currency pair consisting of the US dollar and the Swiss franc. In trading slang, this pair is known as the Swissy.

    It shows how many Swiss francs (the quote currency) it costs to purchase one US dollar (the base currency).

    Trading the Swissy

    The Swissy is one of the seven major currency pairs that contain the US dollar and are the most traded pairs on the forex market.

    As currency pairs are affected by external factors that influence an individual currency value, the USD/CHF will fluctuate according to the difference in interest rates set by the Federal Reserve (Fed) and the Swiss National Bank. For example, any intervention by the Fed in the markets aimed at strengthening the US dollar would be likely to see a rise in the value of the USD/CHF.

    The USD/CHF tends to have a negative correlation coefficient with the EUR/USD. This means that two pairs will move in opposite directions most of the time. Traders generally tend to sell the USD/CHF when the EUR/USD rallies and vice versa due to the Swiss franc being deemed a “safe haven”.

    To learn more about the economic impact on currency pairs, visit:

    Currency correlation