|USD/CHF | Range Today: 72.1 pips
|Use time frame m5, m15, m30, H1, and H4 to use this data | Update: March 19, 2022
|Swiss National Bank
|0.00 – 0.25%
The U.S. dollar Swiss franc (USD CHF) is a currency pairing whereby the U.S. dollar and the Swiss franc can be traded against each other. The USD CHF can be thought of as the dollar versus the Swiss franc – you short the dollar and go long the franc or you go long the dollar and short the franc. The USD CHF is numbered among the top ten traded currency pairs. The USD CHF may also be written as USD/CHF.
The Swiss franc is the only franc left in Europe after the rest joined the euro. The USD CHF is an interesting play in that the franc is often seen as a safe haven currency issued by one of the most stable countries in the world. In times of uncertainty, the franc usually stays stable or appreciates against its European counterparts. Depending on the nature and location of the event that sets off global uncertainty, the USD CHF can offer a bet on which safe haven currency people will turn to in greater numbers.
Switzerland is also a major banking destination for foreign capital.
About US Dollar
The USD is integral to world trade in that it belongs to the world’s largest economy and acts as the world reserve currency. Because of this unique situation, many of the standard economic rules do not seem to apply to the USD.
The U.S. government has had long periods of fiscal irresponsibility and yet the USD has not always suffered during inflationary times that would damage any other currency. This is because, as the world’s largest economy, the USD is considered a safe haven currency in times of global uncertainty. However, this rule doesn’t always hold, and the U.S. dollar does eventually pay for periods of prolonged inflation and trade deficits – it just seems to enjoy a much longer lag before any market reaction takes place.
About Swiss Franc
The Swiss franc (CHF) is the official currency of Switzerland and Liechtenstein. The Swiss franc is considered to be one of the major world currencies and is paired with all the other major currencies, including the U.S. dollar (USD), Japanese yen (JPY), British pound sterling (GBP), euro (EUR), Australian dollar (AUD) and Canadian dollar (CAD).
The Swiss franc was once the currency of choice for banks and high-net worth individuals because it was backed by a percentage of gold set by law. This law was repealed in 2000, but the traditional fiscal responsibility of the Swiss has kept the franc’s status as a safe haven currency.