Change Languange: [gtranslate]
Swiss Franc Currency

The Swiss franc (CHF) is considered to be a major currency in the Forex market and the premier safe-haven currency.

Switzerland is the world’s thirty-sixth largest economy.

Trade Surplus or a Trade Deficit?

Switzerland runs a trade surplus of $49.35 billion, giving the country a ranking of 7 out of the 190 countries tracked by the CIA in The World Factbook.

What Does Your Economy Export?

Switzerland exports machinery, chemicals, metals, watches, and agricultural products.

According to the World Trade Organization (WTO), 25 Switzerland exports $172.9 billion in goods and merchandise corn-pa red to only $68.8 billion in commercial services. The WTO breaks down those exports as follows:

Goods and Merchandise

  • Agricultural products: 4.2 percent
  • Fuels and mining products: 5.6 percent
  • Manufactures: 89.4 percent

Commercial Services

  • Transportation: 8.2 percent
  • Travel: 20.3 percent
  • Other commercial services: 71.5 percent

To Whom Does Your Economy Export?

The W’TO ranks the following countries as the top destinations for exports from Switzerland:

  • European Union: 59.7 percent
  • United States: 10.0 percent
  • Japan: 3.8 percent
  • China: 2.9 percent
  • Hong Kong: 2.9 percent

What Does Your Economy Import?

Switzerland imports machinery, chemicals, vehicles, metals, agricultural products, and textiles.

According to the WTO, the country imports $155.7 billion in goods and merchandise compared to only $35.5 billion in commercial services. The WTO breaks down those imports as follows:

Goods and Merchandise

  • Agricultural products: 7.3 percent
  • Fuels and mining products: 11.4 percent
  • Manufactures: 80.6 percent

Commercial Services

  • Transportation: 20.6 percent
  • Travel: 30.7 percent
  • Other commercial services: 48.7 percent

From Whom Does Your Economy Import?

The WTO ranks the following countries as the top sources imports to Switzerland:

  • European Union: 78.0 percent
  • United States: 5.8 percent
  • China: 3.0 percent
  • Japan: 2.1 percent
  • Vietnam: 1.3 percent

Do You Have an Attractive Government Debt Market?

Switzerland currently has a Moody’s rating of Aaa. This is the only rating that the country has had in the past 30 years. This is a positive sign for the country’s government debt market.

Do You Have an Attractive Equities Market?

Switzerland has an attractive equities market. It is the twelfth largest equities market in the world, with a total \market value of $1.071 trillion.

Central Bank Mandate

The Swiss National Bank’s (SNB) monetary policy strategy consists of three elements. First, the SNB states how it defines price stability. Second, it bases its monetary policy decisions on a medium-term inflation forecast. Third, it sets an operational target range for its chosen reference interest rate, the three-month 1,1 BOR.

The SNB has foreign currency reserves of $217,227 million and gold deposits of $47,161 million.

Government Intervention in Forex

The Swiss government has been known to intervene in the currency market from time to time.

Important Economic Announcements

When you are watching the economic announcements coming out of Switzerland, make sure that you keep your eye on the following:

  • Interest rates
  • Retail sales
  • KOF Economic Barometer
  • Employment
  • Inflation
  • Gross domestic product (GDP)
  • Trade balance

Are You a Safe-Haven Currency?

Yes, the Swiss franc is considered to be a safe-haven currency. An extremely stable economy and the fact that a comparatively large amount of Swiss francs are backed by gold make the Swiss franc an attractive investment during times of market unease and volatility.

How Can I Trade You?

You can trade the Swiss franc using any of the following:

  • Spot Forex
  • Forex futures
  • Exchange-traded funds (ETFs)
  • Exchange-traded notes (ETNs)
  • Spot Forex options
  • Exchange-traded Forex options

Leave a Reply

Your email address will not be published. Required fields are marked *

EURUSD Fighting a continuous market bias

After using a trading journal for a while, I noticed something remarkable. For one specific reversal strategy I trade, around

8 Basic Forex Market Concepts

You don’t have to be a daily merchant to take advantage of a forex marketplace – any time we transport

Difference of True and False ECNSTP

Since many people trade online, traders have continuously expanded their knowledge and expertise. Years ago, many traders would have struggled

Define Overbought and Oversold In Forex

Many times in trading we here the terms overbought and oversold. We hear an analyst state that the EUR/USD is

Danish Krone Currency

The Danish krone (DKK) is considered to be an exotic currency in the Forex market. The most important thing you

Fundamentals of Money Supply

The money supply represents the total amount of a currency that is circulating through the economy. That may seem like

Retail Sales Report - Forex Calendar

Retail sales announcements report on how much money individual consumers are spending on retail goods. This is where the rubber

Bearish Flag Pattern

As a trader in the Forex market, one of the most critical skills you can possess is the ability to