Trade on USD/CHF

Trading the Dollar/Swiss Franc (USD/CHF) rate

Trade on USD/CHF

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The USD/CHF currency pair is currently a heavily traded currency pair in Forex. In this article, we'll take a look at the characteristics of this asset and the factors that can influence its price.
USD/CHF trading: in brief
  • The USD/CHF rate is influenced by economic indicators in the United States and Switzerland, such as interest rates, GDP growth, inflation and the trade balance.
  • Traders use technical analysis to study historical price charts and identify trends, patterns and potential signals, such as moving averages, RSI and MACD.
  • Events such as elections, wars and natural disasters can affect risk perception and capital flows, impacting the USD/CHF price.
  • Risk management strategies, such as stop-loss and take-profit, allow traders to limit their potential losses and secure their gains.
  • Market sentiment towards the USD/CHF can be analysed using surveys, social media data and other indicators. It can influence the future direction of the price.

Elements to consider before investing in this asset

Analysis N°1

In general, the economic health of these two countries will need to be monitored in terms of the strength of their growth or recession.

Analysis N°2

Policy rates are also key fundamental indicators. It is therefore necessary to follow their evolution over time by paying attention to the statements and announcements of the Fed and the SNB. Of course, the interest rate differential between these two currencies should be studied as a priority.

Analysis N°3

The speeches of the members of these two central banks should also be monitored as they can provide clues as to what these organisations are preparing for their future monetary policy.

Analysis N°4

In terms of economic indicators, you should monitor, for example, the GDP, the unemployment rate, the manufacturing indices and the confidence indices. It is important to always compare these figures with the consensus that the economic calendar will also indicate for each event.

Analysis N°5

The economy of Europe and the rest of the world can also have an indirect influence on the economy of Switzerland and the United States and care should be taken to monitor all available indicators.

Analysis N°6

Finally, geopolitical events can have a strong impact on these two currencies as they are closely linked to the possibility for these two economies to improve their growth. This could be links with other world economies, decisions impacting the economy or changes in government or elections.

Trading the Dollar/Swiss Franc (USD/CHF) rate
Trade on USD/CHF
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Trade on USD/CHF

What should I know before investing in the USD/CHF?

The USD/CHF is the currency pair that corresponds to the exchange rate between the US dollar and the Swiss franc. It is also known as the "Swissie".

This cross indicates the amount of Swiss francs needed to buy one US dollar. It should be remembered here that the US dollar is the world's reserve currency and therefore the currency in which most foreign debt is held. It is a major currency in the foreign exchange market.

As for the Swiss franc, it is the eighth most traded currency in the world but also and above all the official currency of one of the world's largest economies. This currency is not only used in Switzerland but also in Liechtenstein.

Trade on USD/CHF
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Why invest in the USD/CHF?

We cannot give investment advice or opinions on specific transactions, as this would require financial analysis and individual knowledge of your situation. It is important to do your own research and consult a financial adviser before making any investment decisions.

However, we can provide you with some general information about the USD/CHF pair and the factors that can influence its price:

The USD/CHF is one of the most heavily traded currency pairs in the world. It is often seen as a safe haven, as the Swiss franc is perceived as a stable currency. This means that demand for the CHF can increase in times of economic uncertainty or geopolitical unrest.


When is the best time to trade the USD/CHF?

There is no single 'best' time to trade the USD/CHF, as it depends on a number of factors, such as :


Switzerland's economy and the factors that influence the CHF :

Switzerland's economy is small but has great importance in the world of finance. Its GDP is largely produced by financial services and the country is valued in the context of global fund storage due to its particularly strict policy on banking secrecy and neutrality.

So if you want to invest in the USD/CHF rate, you should be aware of the country's specific economic characteristics and the various factors that can influence its rate. The Swiss franc rate can be influenced by


The US economy and factors influencing the US dollar:

The US economy is of course at the centre of the world economy. As such, the US dollar is currently, and has been for a long time, the most liquid Forex currency as it is the most traded currency in the world.

The factors you need to follow to understand how the dollar may move in this market are as follows:


How does trading the USD/CHF in Forex work?

The USD/CHF currency pair is offered by almost all Forex brokers in the market. On the platforms offered by these brokers, you can buy or sell positions on the exchange rates of the various currencies, including the USD/CHF, in order to profit from their variation.

Taking a position on the USD/CHF therefore consists of buying one of these two currencies while selling the other, depending on whether you anticipate a rise or fall in this exchange rate.

With regard to this currency pair, it should be remembered that the US dollar and the Swiss franc are so-called floating currencies. This means that their value on the market is not linked to any conditions other than those of the market and therefore of investors. Thus, we can see on the stock market charts of this cross that there are numerous daily variations with successive peaks and troughs.

Several strategies are possible to try to benefit from these price fluctuations. Some investors choose to practice day trading, i.e. to take short, quick positions in a single session. But you can also make a longer-term investment in this asset by holding an open position for several days.

Trading the USD/CHF currency pair has a few special features that you should be aware of, compared to other crosses in the market:

Trade on USD/CHF
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Conclusion: How to analyse the USD/CHF price?

As the USD/CHF currency pair is heavily traded in the forex market, its liquidity is very strong, ensuring that a counterparty can easily be found to buy or sell US dollars or Swiss francs.

This currency pair is also linked to several external elements that you can use as part of your fundamental analysis of this security. Of course, it is mainly the monetary policy that will influence this value. We will follow with interest the debt policy, the interest rates or the quantitative easing of deflation of the American Fed and the Swiss National Bank or SNB.

Furthermore, events that may influence the European Union market, in which Switzerland is deeply embedded, may also influence the Swiss franc and its exchange rate.

In addition, certain fears and uncertainties regarding the global economy may lead to a rise in the USD/CHF currency pair, as the Swiss franc is considered a safe haven due to the reputation of the country's banks. There is also a correlation with gold, where a rise in the price of gold can lead to a fall in the value of the cross.

Finally, there is also a correlation between the CGF and other major currency pairs in the foreign exchange market. For example, there is a correlation of this currency with the EUR/USD. When the Euro exchange rate with the US dollar falls, this often leads to greater investments in USD/CHF.

All in all, there is a lot of information and indicators that you can follow in your analysis of this cross. But don't forget to also perform a technical analysis of this stock using the live charts and the various indicators.

Frequently Asked Questions

How is the USD/CHF currency pair priced?

The price of the USD/CHF currency pair depends on the volumes bought and sold in these two currencies on the foreign exchange market. This is because the cross is a floating cross, which means that only supply and demand will influence its price. However, this supply and demand will depend on many other factors that you can study as part of the fundamental analysis of this asset.

Where and how to trade the USD/CHF?

To invest in the USD/CHF rate, you need to register with an online Forex broker. These brokers specialise in the foreign exchange market, although they may offer other instruments such as CFDs. Once you have created and funded your account, you can place buy and sell orders on the cross to try and profit from price differentials during the day.

How do I do a good technical analysis of the USD/CHF?

If you want to do a good technical analysis of the USD/CHF price, you should first use a customisable chart on which you can display trend and volatility indicators. Popular indicators include MACD, moving averages, Bollinger Bands and RSI.

Trade on USD/CHF
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