USD/CHF Live Chart

The USD/CHF pair is one that a lot of traders will ignore in the beginning of their trading career. This is because it is not as exciting as some of the other pairs, as it tends to be very steady. Also, it is typically the inverse of the EUR/USD pair, so a lot of traders simply trade the EUR/USD pair and forget about this particular one. However, that is a mistake as there are quite often trading opportunities in the Swiss franc.

Above all else, the Swiss franc is considered to be a “safety currency.” With this means is that in times of economic trouble, a lot of money will flow into Switzerland because it is known for the safety of its banking industry. The Swiss were one of the last countries to abandon the gold standard, so because of this it is believed that Switzerland holds a disproportionate amount of gold, which of course means safety. In fact, one of the first things that large money managers will do when there are economic problems is by the Swiss franc because they are putting money into Swiss banks or perhaps bonds.

On the other side of this pair is the US dollar. It serves the same function, but the US has a disproportionate amount of debt. Because of that, the Swiss franc is actually considered to be “safer” than the Dollar, so in times of economic trouble and concerned, this pair will fall in favor of the Franc.

USD/CHF Live Chart



 

This pair is considered to be a major pair, meaning that it can be traded at any time during the day but it should be noted that Asians typically will use the Japanese yen as a safety currency, so this pair can be very quiet during Asian trading. Most of the Swiss franc trading is probably done during the European session, by a significant amount of liquidity can be found during North American trading hours as well. One of the main reasons that this pair moves more during the European session is the fact that Swiss banks of course are open, and are doing international transactions during the day. This of course makes sense as there would be more commerce being done.

Average Spread on the USD/CHF

The spread on this pair tends to be somewhere between two and three pips, so it is certainly tight enough for short-term traders. However, this pair doesn’t typically move swiftly, so it’s not exactly a scalper’s paradise. With that, it tends to be more or less a swing traders type of market, and should be thought of as a pair that is more steady than volatile. That’s not to say that volatility cannot enter this pair, it certainly can. However, overall this tends to be a more stable currency pair which makes it a good one for traders to learn on. It can take a lot of the nervousness out of trading that the less liquid pairs can bring.

Major Economic Events that Impact the USD/CHF

Economic announcements that move this market are of course interest-rate announcements out of both the Swiss National Bank, and of course the Federal Reserve. Employment numbers from the US can move this market, and while there are plenty of Swiss announcements that come out during any given month, the truth of the matter is that the market tends to overlook most of them. GDP can have an influence on the Swiss franc, but ultimately this pair is almost always used as a proxy for risk appetite fading. If stock markets around the world are doing very poor during a session, it’s quite common to see the value of the Swiss franc rise.

While this is considered to be the “anti-EUR/USD pair”, the truth is that there is much more going on in this pair than most people give it credit for. Think of the Swiss franc as a safety net, and one that you can use in times of trouble. Because of this, it most certainly has a place in your portfolio.

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