USD/CHF Exchange rate
Editors’ Picks
EUR/USD retreats from multi-week highs, holds above 1.0800
After climbing to its highest level in over a month above 1.0850 with the immediate reaction to the April inflation data from the US, EUR/USD erased a portion of its daily gains and declined below this level. The improvement seen in risk mood, however, helps the pair hold its ground.
GBP/USD clings to daily gains above 1.2600
GBP/USD pulled away from the monthly high it set above 1.2650 but managed to stabilize in positive territory above 1.2600. The US Dollar stays under modest bearish pressure as markets assess the underlying details of the inflation report and how they could influence the Fed's rate outlook.
Gold stays above $2,360 after US inflation report
Gold trades modestly higher on the day above $2,360 in the American session. The data from the US showed that annual inflation edged lower to 3.4% in April as expected. The benchmark 10-year US Treasury bond yield stays in the red below 4.4%, allowing XAU/USD to keep its footing.
Ripple’s discounts for institutional clients stir debate among attorneys discussing SEC lawsuit
Ripple price consolidates in a tight range around $0.50 on Wednesday as the Securities and Exchange Commission (SEC) legal battle against payment-remittance firm Ripple intensifies with two key issues in focus this week.
US inflation and Retail Sales data add to pressure on Fed to signal rate cut
The US CPI report for April was mostly in line with expectations. The annual rate for headline price growth fell to 3.4% from 3.5%, while the core rate declined to 3.6% from 3.8%.
Majors
Cryptocurrencies
Signatures
USD/CHF, the “Swissie”
USD/CHF is the abbreviation for the U.S. dollar and Swiss Franc cross. Trading the USD/CHF currency pair is also known as trading the "Swissie". The Swiss franc is the only franc left in Europe after the rest joined the euro. It is often seen as a safe-haven currency (any globally traded currency that serves as a reliable and stable store of value). In times of uncertainty, the franc usually stays stable or appreciates against its European counterparts. The USD/CHF tends to have a negative correlation with the EUR/USD and GBP/USD currency pairs. This is due to the positive correlation of the euro, Swiss franc and the British pound.
The Swiss Franc is considered to be a “safe-haven” currency: it is expected to increase its value against other currencies in times of volatility, particularly in the stock markets. To avoid an abusive appreciation of its currency (and its consequent drop of Swiss exports) during the worst years of the recent financial crisis, the Swiss National Bank established a maximum price for the Swiss Franc at CHF1.20 per EUR. This exchange-rate peg was established in 2011 and removed without previous notice in January 2015, creating a big shock in the markets and an “immediate aftermath of more than 20% decline in EURCHF”, as Kathleen Brooks reported on FXStreet the next day.
The historic maximum quote for the USD/CHF cross was reached on January 4th 1971 at 4.318 and the minimum on August 8th 2011, at 0.7213.
MOST INFLUENTIAL CURRENCIES FOR USD/CHF
The USD/CHF pair can also be impacted by the moves of other currencies, in particular, the Euro and Yen for being a prominent commercial partner and major currencies too.
MOST INFLUENTIAL ORGANIZATIONS FOR USD/CHF
The organizations that most impact the USD/CHF are the Central Banks of Switzerland (SNB, the Swiss National Bank) and of the United States (Fed, Federal Reserve of the United States), the two countries that issue the currencies that make the pair. Central Banks control the nation's monetary policy, through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.
The central bank of the Eurozone (the ECB, European Central Bank) also has influence on the Swissie due to the importance of business and trade between the UE and Switzerland. Any assessment of possible scenarios linked to a macroeconomic decision taken by the ECB has impact on its commercial partners. The Euro is the second reference currency in the world (after the US Dollar) and any move by its central bank, the ECB, has consequences on the assessment of its partners.
The Bank for International Settlements (BIS) is also an organization to take into account when trading the Swiss Franc. It is an international financial institution owned by central banks which "fosters international monetary and financial cooperation and serves as a bank for central banks". It also provides banking services, but only to central banks and other international organizations. It is based in Basel, Switzerland.
The Swiss Financial Market Supervisory Authority (FINMA) is the Swiss government body responsible for financial regulation. As a state regulatory body, FINMA is endowed with supreme authority over banks, insurance companies, stock exchanges, securities dealers and collective investment schemes.
Finally, the SIX Swiss Exchange (formerly SWX Swiss Exchange), based in Zurich, is Switzerland's principal stock exchange (the other being Berne eXchange). The moves and evolution of this market are watched by CHF traders.