The USD/CHF currency pair belongs to the Majors Group. This group includes 4 of the strongest currencies in the Forex market such as EUR/USD and USD/JPY.
The Swiss Franc is the official currency of Switzerland and in this case, it is traded against the US Dollar. Both the Swiss Franc and the USD/CHF currency pair are often nicknamed “Swissy”. This Swiss Franc is considered to be a strong currency due to Switzerland’s rigid banking and privacy laws. It also helps that Switzerland has maintained neutrality when it comes to worldwide affairs.
This currency pair is considerably less liquid than the Euro and the Pound; however, it is still a popular and easy asset for investors to trade.
The USD/CHF currency pair is affected by several factors. Its market movement can be determined by number of attributes like:
- Company stocks – there are several prestigious companies based in Switzerland, including Nestle, Chopard, Swatch Group, Credit Suisse and UBS. The stocks of these companies can easily affect the market movement of the Swiss Franc, which has an overall impact on the currency pair.
- The Swiss National Bank observes the Swiss Franc, US politics and economic policies. This can therefore have a direct effect on Switzerland’s economy.
- The Swiss Franc is in fact a safe asset and is most often traded when there are political or economic uncertainties. When the situation is more stable, trading volumes for this currency pair tend to drop.
With our latest tools and technology, you can effortlessly trade USD/CHF at Almahfaza. We provide traders with a responsive platform to easily and quickly open and close trades. Traders can also take advantage of Almahfaza’s educational tools and charts that can help in making better trading decisions.