Top 3 Reviews of USD/CHF

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Trading any currency pair that involves the Swiss franc is tricky. The Swiss franc (also called CHF, acronym for Confoederatio Helvetica Franc) is often considered a safe haven, mainly because its government keeps a strong arm on it, preventing it from moving too much.

The upside is that you always know where you stand. The downside is there isn’t much movement to profit from. Here are some tips that should allow you to profit from this currency pair.

1) Always look at EURUSD first

In trading terms, we say that USDCHF has a negative correlation against EURUSD. This means when the EURUSD goes up, the USDCHF goes down, and inversely. The EURUSD tends to have a leading role in this correlation though, and so you should always know what it’s doing before placing your trades on USDCHF.

2) Follow the news

The USDCHF is strongly influenced by the news. This is true for most currency pairs, but even more for USDCHF. Therefore, you’ll have to always know which news are coming up, when, and how they might affect the pair. Fundamental analyzing skills will be very important with this one.

3) Know the disparities of interest rates

Both the dollar and the Swiss franc are considered safe havens. This is mainly due to the fact that they’re both developed countries, and that people tend to keep investing in their respective currencies for a long time.

It’s no surprise that any changes in the interest rates between those two countries will strongly affect the way the currency pair is behaving. You’ll have to know at all times whether the situation is unchanged, or if changes might be coming up. Never forget that even the potential news of a change maybe happening in the future can affect a currency pair.

Be ready!

Written by Ferl Ngningone

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Ferl is a former Financial Analyst at BNP Paribas and a well-seasoned globe trotter. Besides trading online he enjoys traveling more than anything.