The USD/CHF currency pair, also known as ‘Swissy’, is popular in the forex space despite coming with certain challenges. This page will break down the history of the USD/CHF relationship, including its benefits and risks. We also look at how to start trading the USD/CHF in 2023, by capitalising on volume and volatility with charts, strategy, signals and trading hours.
USD/CHF Trading Brokers
#1 - Forex.com
Forex.com is a leading FX broker. The brand offers a wide range of currency pairs and some of the lowest fees in the industry. Spreads on the EUR/USD come in as low as 0.0 with a $7 commission per $100k.
"Forex.com is an excellent broker for forex traders with over 80 currency pairs, tight spreads, low commissions and powerful platforms. The brand is also heavily regulated while its parent company is listed on the NASDAQ, giving it a high trust score."- DayTrading Review Team
- GBPUSD Spread: 1.0
- EURUSD Spread: 1.0
- EURGBP Spread: 1.0
- Total Assets: 80+
- Leverage: 1:50
- Platforms: MT4, MT5, TradingView, eSignal, AutoChartist, TradingCentral
Forex.com offers access to thousands of US, EU and UK stocks, with spreads of just 1 point. Speculate on household names as well as new IPOs. US stocks are available from just 1.8 cents per share.
Forex.com boasts a global reputation with multiple awards and 20+ years experience. Regulated in the US, EU, UK and Canada they provide a huge range of markets, not just forex, and offer competitive fees on a cutting-edge platform. The brand also provides a suite of additional tools, from performance analytics and SMART Signals to advanced charts and strategy builders.
- Industry-leading pricing on popular forex assets starting from 0.0 pips
- Excellent trading tools including Trading Central, SMART Signals and MetaTrader 4
- VPS hosting for automated strategies
- No copy trading platform
- $15 monthly inactivity fee
- Investment offering varies between countries
#2 - NinjaTrader
NinjaTrader supports the trading of popular currencies including the EUR/USD. The trading software also offers unique features tailored to forex trading, including specific order and market windows.
"We recommend NinjaTrader for high-volume futures traders looking for low fees and premium analysis tools."- DayTrading Review Team
- GBPUSD Spread: 1.6
- EURUSD Spread: 1.3
- EURGBP Spread: 1.6
- Total Assets: 50+
- Leverage: 1:50
- Platforms: eSignal
Stocks can be traded by connecting the NinjaTrader platform to supporting brokers. You can then take positions on large public companies and household names via advanced trading software.
Trade micro Bitcoin futures with low fees and leading charting tools. Get exposure to Bitcoin through CME Group's centralized exchange with robust risk management tools.
NinjaTrader is a US-headquartered and regulated brokerage that specializes in futures trading. There are three pricing plans to suit different needs and budgets, as well as ultra-low margins on popular contracts. The brand's award-winning charting software and trading platform also offers a high-degree of customization and superb technical analysis features.
- Thousands of add-ons and applications from developers in 150+ countries
- Easy account opening that takes a few minutes
- Free platform access and trade simulation capabilities
- Non forex and futures trading requires signing up with partner brokers
- Withdrawal fee on some funding methods
- Premium platform tools come with an extra charge
#3 - OANDA US
OANDA offers 68 forex pairs, more than many alternatives. The broker's in-house platform also offers impressive execution speeds and a suite of advanced charting and analysis tools.
"We recommend OANDA for US traders seeking a user-friendly platform with premium market research and a straightforward joining process. OANDA is a particularly good pick if you want a heavily regulated broker with a secure trading environment."- DayTrading Review Team
- GBPUSD Spread: 3.4
- EURUSD Spread: 1.6
- EURGBP Spread: 1.7
- Total Assets: 65+
- Leverage: 1:50
- Platforms: MT4, TradingView, AutoChartist
Speculate on the world's biggest cryptos by market cap. Commissions are lower than many peers starting at 0.25%. Clients can spot trade cryptocurrencies on Paxos's itBit exchange through the OANDA platform via OANDA’s partnership with Paxos. Users can trade digital currencies in a few taps through the iOS and Android mobile app.
About OANDA US
OANDA is a popular brand offering exceptional execution, low deposit requirements and advanced charting and trading platform features. The top-rated brand has over 25 years of experience and is regulated by trusted agencies, including the NFA/CFTC. Around the clock support is available, alongside flexible contract sizes and automated trade executions.
- Transparent pricing structure with no hidden charges
- The OANDA web platform offers advanced price charts and graphs
- Low minimum deposit for beginners
- Customer support not available on the weekend
#4 - Webull
Webull offers a modest collection of 17 currencies, including majors like EUR/USD. Forex can be traded on the feature-rich investing app with real-time quotes and low spreads.
"Webull is best for traders looking to buy and sell stocks on a user-friendly app with zero commissions."- DayTrading Review Team
- GBPUSD Spread: 0.4
- EURUSD Spread: 0.2
- EURGBP Spread: 0.4
- Total Assets: 15+
- Leverage: 1:4
- Platforms: Own
Webull offers a fantastic list of 2000+ US stocks, fractional shares, options, ETFs, OTC, and ADRs. There is no commission on stocks, ETFs, and options. Full extended trading hours is available while custom screeners and watchlists aid the decision making process.
Webull offers trading on popular cryptos like Bitcoin against the US Dollar. With 35+ tokens and premium analysis tools, traders can review market trends and identify opportunities in a few taps.
Webull is a US-regulated trading app that offers stocks, options, forex, cryptos, ETFs, fractional shares and more. The firm is authorized by the SEC and FINRA with a strong trust rating. Low fees, no minimum investment and generous bonuses have made the discount broker popular with online investors.
- Smart Advisor for auto investing
- Promotions with free stocks
- No minimum deposit for beginners
- Day trading is limited for customers with less than $25,000 deposited
- Sometimes sudden changes in trading conditions
- High deposit and withdrawal wire fees for non-US residents
#5 - IG Group
IG offers currency trading on its award-winning web platform and mobile app. Comprehensive charts and forex analysis tools are also available through ProRealTime.
"IG offers a superb all-round package. Beginners will appreciate the user-friendly web platform and secure trading environment while established investors will rate the 17,000+ markets and top-tier market research."- DayTrading Review Team
- GBPUSD Spread: 0.9
- EURUSD Spread: 0.8
- EURGBP Spread: 0.9
- Total Assets: 80+
- Leverage: 1:30 (Retail), 1:250 (Pro)
- Platforms: MT4, AutoChartist, TradingCentral
IG offers an impressive suite of 17,000+ CFD instruments. Negative balance protection ensures accounts cannot drop below zero while custom price alerts and the IG Academy enhance the trading experience.
IG offers 13,000+ shares, with more listed firms than most competitors. Fees are low with no commission on US stocks. Extended hours trading is also available alongside ultra-fast execution speeds of 0.014 seconds.
11 popular cryptos are available, plus two crypto crosses. A crypto index is also offered, following the value of the top 10 digital currencies by market cap. All cryptos are available via CFDs.
About IG Group
IG is an award-winning broker that has an excellent reputation globally. The brand-US offers spread betting, CFD and forex trading across a comprehensive suite of markets. IG is also multi-regulated, provides a great trading app and has 50 years experience.
- Over 17,000 assets are available spanning stocks, forex, commodities, baskets, futures, options and more
- IG is an LSE-listed company with a transparent financial history and a great track record
- 24/5 customer support is available
- Inactivity charge
- No copy trading platform
#6 - Videforex
Trade 35 major, minor and exotic forex pairs through CFDs with floating spreads from 0.1 pips. Alternatively, binary options allow you to speculate on rising and falling prices with a fixed stake and payout.
"Newer traders will find a lot to enjoy about trading binary options on Videforex's easy-to-use proprietary platform, as well as the broker's copy trading solution. Payouts are also higher than most alternatives climbing to 98%."- DayTrading Review Team
- GBPUSD Spread: Floating from 0.1 pips
- EURUSD Spread: Floating from 0.1 pips
- EURGBP Spread: Floating from 0.1 pips
- Total Assets: 35
- Leverage: 1:500
- Platforms: TradingView
Videforex CFDs are available on forex, indices, cryptocurrencies and commodities with up to 1:500 leverage and tight spreads from near zero. CFDs incur a commission fee of 1%–2.5% and up to 5% for leveraged trades.
Trade binary options and CFDs on global stocks from US, European, Russian and Asian exchanges, as well as 37 indices covering a wide range of global markets. The access to stocks trumps many binary options brokers.
Traders can speculate on crypto prices in pairs with USD and CNY through binary options and CFDs. The range of digital currencies is fairly narrow vs alternatives but major tokens like Bitcoin are available.
Videforex offers access to stock, index, crypto, forex and commodities markets via binary options and CFDs. The proprietary platform, mobile app and integrated copy trading are user-friendly and will suit new and casual traders, and the market analysis tools and trading contests provide good ways to improve your trading skills.
- You can trade every day and through the weekends
- The firm facilitates day trading and binary options for global customers
- Mirror the trades of experienced investors with low fees
- US clients aren’t accepted due to legal restrictions
- No MetaTrader 4 integration
- The broker isn’t overseen by a trusted regulatory agency
#7 - Pocket Option
Binary and OTC options can be purchased on over 40 foreign exchange pairs. Typical payouts are also decent at 81% and users can trade forex binary options in just a couple of clicks.
"We recommend Pocket Option for aspiring binary options traders looking for copy trading services and a low minimum investment."- DayTrading Review Team
- GBPUSD Spread: N/A
- EURUSD Spread: N/A
- EURGBP Spread: N/A
- Total Assets: 50+
- Platforms: MT5
Trade 30 of the most popular American multinational stocks including Microsoft and Google. Payouts on big brands come in at a decent 92% while indices are available up to 67%.
Pocket Option supports major cryptocurrencies on a beginner-friendly app. Over 10 leading cryptocurrencies are available with very high leverage up to 1:1000.
About Pocket Option
Founded in 2017, Pocket Option is a binary options broker offering up/down contracts on forex, stocks and cryptocurrencies. With over 100,000 active users and a global reach, the brand has proven popular with budding traders. Pocket Option also supports dozens of payment methods and has a low minimum trade of just $1.
- Cashback and achievements
- Turbo binary options
- Copy trading
- Only one account type is available
- The expiration time is limited on trades
- IFMRRC is not a reputable regulator
#8 - Just2Trade
Traders can access a decent range of 60+ major, minor and exotic forex pairs through standard and ECN accounts with tight spreads from 0.5 and 0.0, respectively. Execution speeds are also faster than most competitors at 50ms, which will appeal to active forex day traders.
"Traders seeking a multi-asset broker with an exceptional range of 35,000+ assets, market-leading software and low trading fees should consider Just2Trade. The Try2BFunded program will also appeal to users seeking funded trading accounts."- DayTrading Review Team
- GBPUSD Spread: 0.0
- EURUSD Spread: 0.0
- EURGBP Spread: 0.0
- Total Assets: 50+
- Leverage: 1:20
- Platforms: MT4, MT5, TradingCentral
With CFDs on 20+ Polish and 30+ US stocks, as well as energies and seven global stock indices covering US, UK, European, Australian and Japanese markets, Just2Trade offers a superb selection of global assets.
As well as Just2Trade's 50+ stock CFDs, traders can access a huge variety of thousands of stocks traded on US and international exchanges. The chance to build an investment portfolio and benefit from dividends sets Just2Trade apart from most CFD brokers.
Traders can speculate on a modest selection of the largest cryptos by market cap including Bitcoin. On the downside, crypto trading is only available to clients from Asia which is more restrictive than many alternatives.
Just2Trade is a reliable multi-regulated broker registered with FINRA, NFA and CySEC. The company has 155,000 clients from 130 countries and stands out for its huge suite of instruments and additional features, including a social network, robo advisors and a funded trader programme.
- Try2BFunded trader development program with funded accounts for clients who reach profit benchmarks
- The list of 35,000+ instruments is more than almost any other broker
- WhoTrades social network and copy trading through Novoadvisor
- Research tools such as stock screeners require third-party applications
- Few standard educational resources compared to other brokers
- Cryptocurrency is only available in Asia
#9 - Sage FX
Trade 7 major, 21 minor and 29 exotic forex pairs with high leverage and a choice between STP or ECN accounts. Support is available around the clock and the TradeLocker forex software is provided.
"Sage FX will suit forex traders looking for high leverage and ECN spreads. The broker's prop trading service will also appeal to users looking for funded accounts with up to $200K available."- DayTrading Review Team
- GBPUSD Spread: 0.9
- EURUSD Spread: 0.9
- EURGBP Spread: 2.5
- Total Assets: 57
- Leverage: 1:500
- Platforms: TradeLocker
Trade CFDs on forex, stocks, metals, energies, indices, cryptos and dollar futures. Sage FX offers tight spreads and high leverage on all instruments from 1:100 to 1:500.
Speculate on price movements of 37 US and European blue chip stock CFDs, including Adidas, Intel and Volkswagen. On the negative side, the selection of stocks is limited vs alternatives and direct share dealing isn't provided.
Trade CFDs with leverage up to 1:100 on 23 crypto pairs with USD including popular tokens like Bitcoin and Ether and lesser-known options like OMG. On the downside, crypto-only pairs are not offered.
About Sage FX
SageFX is an offshore, unregulated CFD broker that offers highly leveraged trading on forex, stocks, commodities, indices and crypto via the TradeLocker platform. Traders can access commission-free trading or an ECN account with tight spreads. While the broker's regulatory status is weak, it does provide segregated accounts and two-factor authentication.
- Ability to deposit and withdraw via Bitcoin
- Flexible accounts with STP and ECN solutions available
- Bonus offers and trading competitions
- Lacks educational resources and other extra features
- Not regulated by any reputable body
- Relatively narrow range of asset classes
#10 - ForexChief
ForexChief supports spot foreign exchange trading on all account types for 40+ major, minor and exotic currency pairs on the leading MT4 and MT5 platforms. Spreads are tight starting from zero and there are no dealers or requotes.
"ForexChief will prove popular with investors looking to trade highly leveraged CFDs on the popular MetaTrader platforms. The large welcome bonus and low starting deposit will also appeal to new traders."- DayTrading Review Team
- GBPUSD Spread: 0.9
- EURUSD Spread: 0.4
- EURGBP Spread: 0.9
- Total Assets: 40
- Leverage: 1:1000
- Platforms: MT4, MT5
ForexChief offers a competitive range of CFDs, encompassing crypto, indices, energies and metals. A clear pricing schedule is available to clients with no hidden charges. Traders can also access very high leverage up to 1:1000.
ForexChief offers 100 US company stocks CFDs for MT4 DirectFX and Classic+ account holders. Investors can speculate on the price of some of the world's largest companies, including Apple and Coca Cola. Spreads start from 5.
ForexChief supports crypto trading with five major digital currencies paired against the US dollar. Traders can bet on rising and falling prices with leveraged CFDs and market-leading trading software.
ForexChief is a foreign exchange and CFD broker, established in 2014. The company is based offshore and registered with the VFSC and FMA. Users can choose between a wide selection of accounts and base currencies, making ForexChief accessible to global traders. The brand also stands out for its no deposit bonus and fee rebates for high-volume traders.
- A welcome deposit bonus is offered to new users
- Turnover rebates for active traders
- The low minimum deposit of $10 will appeal to beginners
- Weak regulatory oversight
- Withdrawal fees on several payment methods
- Limited market research
Breaking Down ‘USD/CHF’
Firstly, what does USD/CHF mean? The exchange rate you see is simply how many Swiss francs (the quote currency) it will cost to buy one US dollar (the base currency).
The USD/CHF is one of the most popular traded currency pairs on the forex market. The CH stands for ‘Confoederatio Helvetica’. This is Latin for Switzerland. Whilst the F stands for ‘franc’.
But what makes this pairing so interesting?
- The US dollar is the world’s largest and most actively traded currency. In fact, it represents approximately half the trading volume of all major currencies.
- The Swiss franc is popular because Switzerland holds an impressive one-third of the world’s privately-owned wealth in its banks.
It’s also worth bearing in mind that Switzerland is not the only country to use the Swiss franc. Liechtenstein, located between Switzerland and Austria and consisting of just 35,000 inhabitants, also use the Swiss franc.
Why Day Trade USD/CHF?
With so many currency pairings available, why does the USD/CHF currency pair deserve your attention?
- Liquidity – Despite being relatively less volatile than other pairs and less liquid than the euro and pound, this pair is still relatively straightforward to trade. Whilst there is an array of influences to consider, rates mainly depend on political and economic instability. This is particularly true when international turmoil strikes, as investors rush to the supposed safety of the Swiss franc.
- Pound similarities – If you have traded or do trade the pound, then the USD/CHF makes for a smooth transition. The British pound and Swiss franc share similar attributes in terms of volatility, price shifts, and technical characteristics. So, looking at the development of the pound may help you predict fluctuations in the USD/CHF.
- Diverse trading instruments – Due to volume and volatility, you have a number of different USD/CHF trading vehicles at your disposal. From ETFs to futures, options, including E-micro USD/CHF futures.
- Stable price information – Due to the regular and consistent flow of economic data from the US, Switzerland, and Europe, conducting fundamental analysis is comparatively easy.
- Availability of resources – In some ways, making money from online chart investing is more straightforward today. You have access to plenty of bar charts, graphs, and commentary websites, not to mention forums full of advice from experienced traders. You even have weekly charts, forecasts, outlook, and the tools needed for Elliott wave analysis.
Drawbacks & Risks
Although the USD/CHF pair comes with a number of benefits, there are also certain drawbacks and risks you should be aware of. The most significant of which are:
- Safe haven dilemma – There is some ambiguity to consider when day trading the USD/CHF now. In times of crisis, both are considered reserve currencies. The problem is, it can be challenging to spot which one people will turn to.
- Dangers of leverage – Leverage and margin trading allow you to borrow capital to increase your position size. Whilst this may boost potential profits, it can also substantially increase losses.
- Volatility – Compared to some currency pairs, including many of the majors, the USD/CHF simply does not promise the same levels of volatility. The result of this is less significant spikes and drops, and therefore, less opportunity to generate profits.
- Automated competition – Profiting from the USD/CHF today means battling with an increasing number of sophisticated algorithms. Even with monthly charts to hand, live streaming data is being analysed and acted upon almost instantaneously by any number of trading bots.
Influences on Movement
Trading the USD/CHF currency pair relies on a detailed understanding of what influences changes in prices and rates. Unfortunately, candlestick charts cannot give you the context that can often prove invaluable.
So, what affects movement in the USD/CHF exchange rate?
- Monetary policy – The actions of both the Federal Reserve (Fed) and the Swiss National Bank (SNB) will impact price action. The SNB, for example, is known to take an active role in maintaining exchange rates and taking steps to reduce recession and currency deflation. So, keep an eye out for the quarterly SNB announcements on interest rates and policy.
- Swiss economic data – Economic strength and weakness cause price movements. So, there are some specific announcements that can cause USD/CHF spikes. These include the Swiss Purchasing Managers’ Index (PMI), the Swiss Consumer Price Index (CPI), plus the KOF Economic Barometer. This final resource provides twenty-five economic indicators that make predictions on how the market will perform over the next two quarters.
- US economic data – The strength of the US economy will influence the currency pair. So, there are certain reports to keep a track of. Employment data, jobless claims, retail sales growth, plus PMI data, can all cause shifts in USD/CHF rates.
- Wars & natural disasters – Events that affect trading partners of either country or that directly impact the two respective countries, can all be felt in the USD/CHF currency pair. This highlights the need to keep abreast of live news updates.
USD/CHF Currency Correlations
Currency pairs do not move independently of each other. Many are tied to the movement of other pairs. This is known as correlation. Correlation is a statistical measure, ranging from -1 to +1. You can have either:
- Positive correlation – This is when FX pairs move in line with each other. The GBP/USD, AUD/USD, and EUR/USD currency pairs are all positively correlated. This is because the US dollar is the counter currency. This means any change to the US dollar is felt in all pairs.
- Negative correlation – This is when currency pairs move in the opposite direction. This is seen in the USD/CHF, USD/JPY, and USD/CAD pairings. This is a result of the US dollar being the base currency.
Often the USD/CHF currency pair is negatively correlated with the EUR/USD. So, traders usually sell the USD/CHF when the EUR/USD price surges. The opposite then happens when the USD/CHF rallies.
There is also a negative correlation between the USD/CHF and the GBP/USD pairs. This is a result of the positive correlation of the Swiss franc, euro and British pound.
Switched on day traders will use this information to their advantage. Looking to other currency pairs may allow you to make more accurate short-term projections as to the movements of the USD/CHF.
USD/CHF Day Trading Strategy
One of the things that appeal about forex trading and investing is that markets are open 24/7, and you actually get a lot more profitable trading time with the USD/CHF pair than many others. You can trade the pair from Sunday evening until Friday afternoon in the US. However, both volume and volatility will vary throughout the day.
You will find both highs and lows during each 24-hour cycle, but bid-ask spreads will widen during quieter periods, then narrow during active periods. So, when is the best time to trade the USD/CHF pair?
The biggest daily moves often take place when Eurozone and Swiss economic data is released, plus at opening hours for equity, options and futures exchanges. A lot of the data mentioned on this page is usually released between 02:00 and 05:00 ET. The half an hour to one hour before these releases and the three hours afterwards will see the most activity.
Also, some US economic releases can come between 08:30 to 10:00 ET. Again, the periods preceding and following these releases can trigger price action. So, many strategies may benefit from focussing their attention on these time periods.
Traders should also note that forex action often drops significantly around the US lunch hour.
If you’re looking for a simple, straightforward USD/CHF day trading strategy, then consider the example below.
Whilst some traders prefer a 5-minute or 15-minute real-time chart, for this basic strategy, a 1-hour chart is recommended.
You then simply need to mark the high and low of each candle of the trading day. Then your pending order buy should be entered 10 pips above the high. Whilst your pending order sell should be entered 10 pips below the low.
You will also need to minimise your risk and protect against substantial losses. So, place a stop-loss 30 pips from your buy/sell order.
The example here is basic. If you are looking for more detailed strategies, take a look at our strategy page.
Some people prefer day trading the USD/CHF currency pair using historical price charts and complex data. Whereas some focus on trading breaking news. News updates can quickly influence market sentiment.
However, to profit from these announcements you need to be tuned in and ready to react at a moment’s notice. Plus, you need access to reliable and thorough sources.
Below you will find some of the most popular and relevant news resources:
- Google Finance
- Yahoo Finance
- Forex factory
On top of breaking news announcements, these sources can also provide a number of other useful services:
- Forecasts for this coming week
- Exchange forecasts and daily analysis
- USD/CHF specific trading definitions
- Price history reviews and yearly averages
- Alternative trend views and perspectives
- Long-term data, from 20 years to 30 years worth of charts
- Technical outlook and latest analysis from experienced traders
So, if day trading on the USD/CHF using the news is part of your plan, all of the above are resources worth exploring.
Since the launch of the Swiss franc in 1850, the franc has enjoyed enormous strength as a currency. Today the USD/CHF pair now boasts the sixth-largest volume in the global forex space. Originally though, the history of the pair represented steady investment connections between the US and Switzerland.
Direct investments from the US to Switzerland have hit a massive $129.8 billion. As such, over the years the US has become Switzerland’s top destination for foreign direct investment (FDI).
Both currencies have also benefited from strong trade ties. The US is Switzerland’s second-largest trade partner after Germany, representing a 10% share of Switzerland’s foreign trade. Conversely, Switzerland is the US’s 17th largest trading partner, worth just 1.4% of total US trade.
These trade and investment connections shaped much of the USD/CHF relationship for many years. Today, however, current prices and forex live charts respond to more current events.
To some extent, the great depression shaped the Swiss franc we know today. It appreciated against all other major trading partners, except the Japanese yen. It grew so strong the SNB actually stepped in to intervene in the currency market.
The SNB aimed to halve the appreciation of the franc against the euro. However, the intervention had clearly failed by 2014. So spectacular was the failure that the franc surged, rallying over 25% in just a few minutes.
It is clear then that the SNB play a vital role in the FX market. This is particularly the case for those trading binary options based on the USD/CHF pair.
Many people do not realise the extent that movement in your live, forex interactive chart is influenced by past events. Events that if you know happened before, allow you to analyse and predict the effects on FX rates this time around.
Role of US Dollar
Whether your day trading strategy relies on support and resistance levels, daily pivot points, or breaking news, having a feel for the staggering role the US dollar plays will help you anticipate future price movement.
Below are some of the key roles the US dollar plays:
- Some countries adopt the US dollar instead of their own or peg their own currency to its value.
- The US is the second-largest trading nation in the world, following China.
- Oil transactions by OPEC countries are often carried out in the US dollar.
- Many banks all over the world hold currency reserves in the US dollar.
- The US accounts for a staggering 25% of the global nominal GDP.
- The US dollar is the most popular traded currency in the world.
- It is commonly used to settle international transactions.
Just a brief look at a long-term USD/CHF chart will show you how prices and average daily ranges shift when announcements are made about the US dollar.
To understand whether the US dollar will strengthen or weaken against the Swiss franc then, you will need to consider a number of important economic indicators.
The most important of which, are as follows:
- Consumer Price Index (CPI)
- Producer Price Index (PPI)
- ISM Non-manufacturing
- Federal Reserve Minutes
- Industrial Production
- ISM Manufacturing
- Non-farm payrolls
- Trade Balance
- Retail Sales
So, USD/CHF technical analysis and forecasts for today should take note of important data releases in the economic calendar.
Also, bear in mind the Federal Open market Committee holds eight regularly scheduled meetings per year and economic projections will be published along with press conferences every three weeks. All will result in the US dollar moving sharply against other currencies, including the Swiss franc.
Role of Swiss Franc
Getting to grips with USD/CHF day trading means understanding what drives the Swiss economy and franc. Switzerland has famously remained neutral in all major wars in Europe. It is also surrounded by the Alps and considered a stable, isolated nation. This has resulted in the Swiss franc becoming a safe haven currency when turmoil strikes.
This reputation is bolstered by their role in private banking. Despite rules loosening somewhat in the last ten years, Switzerland remains a huge global player in the private banking, insurance, and investment management sectors. They are home to global titans UBS and Credit Suisse.
However, focussing on economic activity in the Eurozone, which influences US movements, is perhaps more useful. 80% of Switzerland’s trade activity happens with the EU.
This means the SNB is often more concerned with its currency vs the euro than the US dollar. It usually only steps in if the franc is too weak or strong vs the euro. Why? Because this will benefit Swiss export businesses, that are mainly involved in trading with neighbouring countries.
To a certain extent then, the role of the Swiss franc and the size of the economy is determined by the successes of their major exporting industries. You will know of two of their big exporting industries, watches and pharmaceuticals.
Overall, your daily forex analysis will be influenced by the huge role the Swiss franc plays as a stable, safe-haven currency. Not to mention the support of the formidable banking system it has behind it.
Final Word on USD/CHF Trading
Day trading on the USD/CHF currency pair promises volatility, volume and liquidity. However, generating profits can prove challenging as the Swiss franc is seen as a safe-haven currency.
You will need to use in-depth technical analysis, calling on charts, patterns, the latest foreign exchange news, plus a range of economic resources and indicators. It is also important you find the right broker for your needs, who will facilitate fast and cost-effective trading.
If you can do all of the above, then you’re one step closer to joining the likes of hugely successful forex traders, such as George Soros and Richard Dennis.
For more guidance, see our forex page.
What Is USD/CHF?
USD/CHF is one of the most popular traded currency pairs in the forex market, also known as the ‘Swissy’. The pair represents the exchange rate of how many Swiss francs (quote currency) it will cost to buy one US dollar (base currency).
Why Is Trading The USD/CHF So Popular?
The USD/CHF currency pair is popular due to the US dollar being the base currency (the world’s largest and most actively traded currency). In addition, the Swiss franc is often regarded as a safe haven currency, since Switzerland is a relatively stable country politically and financially.
What Are The Benefits Of Trading USD/CHF?
USD/CHF is less volatile than others pairs and also relatively liquid. Due to its stability, it is also fairly easy to apply technical and fundamental analysis when trading the currency pair. Traders can also enjoy a range of trading vehicles, such as futures, options and ETFs.
What Are The Risks Of Trading USD/CHF?
Due to less volatility than other pairs, traders may not have as many opportunities to profit from price swings. In addition, using leverage and margin when trading can carry some substantial risks.
How Can I Start Trading USD/CHF?
To start trading USD/CHF, you will need to register at an online broker. This will allow you to make a deposit and use the available trading platforms, such as MetaTrader 4. If you’re new to trading, it’s advised to start practising in a demo account first, which is usually offered for free.