USD / CHF (US Dollar / Swiss Franc)

How can You trade the USD/CHF?

Traders who are interested in trading the US dollar versus the Swiss franc can either invest their funds in a forex contract or a contract for difference (CFD).

The latter option enables investors to profit from the difference in the exchange rate of these two currencies between the time the position was opened and when it was closed.

Trading the USD/CHF currency pair through a CFD allows traders to benefit from uptrends as well as downtrends by buying when the rates go up and selling when the rates go down.

Put simply, a trader can speculate on how well (or, how poorly) the greenback will perform against its Swiss counterpart. If he or she believes its market value will rise, they will open a long position (buy). If they think it will drop, however, they will open a short position (sell).

What factors influence the USD/CHF?

  • Like most currency pairs, the USD/CHF is affected by a variety of factors such as political and economic events. The biggest influencers are the Federal Reserve’s interest rate decisions, which give traders insight into future changes in its monetary policy.
  • The greenback is also greatly affected by the non-farm payroll report (NFP), which is usually released on the first Friday of each month. Since the NFP measures the strength of the job market in the US, it is considered one of the best indicators for the future performance of the US dollar on the global stage.

What to consider when trading the USD/CHF?

Though Switzerland’s economy is much smaller in comparison to the United States, this country has strict monetary policies in place that can affect the value of the franc.

This currency’s volatility is also affected by economic events such as gross domestic product statistics, balance of trade, retail sales, inflation rates, industrial production, and employment figures.

Depending on the performance of these reports, the value of the franc will either rise or drop against the US dollar.

Did you know?

Every day, the US prints about 37 million new bank notes, which come to about $696 million.
Statically, however, Americans throw away around $62 million in coins every year.