Live and Historical USD/CHF Rates

This chart shows the value of the United States dollar (USD) against the value of the Swiss franc (CHF) - that is how many Swiss francs can purchase one United States dollar. Both USD and CHF are major currencies. USD/CHF forms a major pair, but it is not a commodity pair.

The U.S. Dollar

USD has been a floating currency since the early '70's. The United States dollar is controlled very strictly by the Federal Reserve Board. This is mostly accomplished by adjusting the lending interest rate for USD. USD is such a popular reserve currency that more dollars are held outside of the United States than within. But none of this is a guarantee that USD will remain the most powerful currency on the market. In 2007, Alan Greenspan said that it was possible the euro could at some point replace USD as the dominate currency on the market.  Whether such a dramatic shift is probable in the post-housing bubble market remains to be seen.

The Swiss Franc

CHF is one of the most valuable currencies in the world. The Swiss economy has made this possible with its large holdings of gold (in an undisclosed location). Even more than its value, the stability of CHF is the major appeal to investors. A low national deficit and a low national unemployment rate significantly contribute to this stability. The Swiss Bank has official control over CHF value, but bank officers tend to allow the international trade market to determine it. It is easy to see why Switzerland has resisted pressure to convert to the euro, together with other EU member nations-especially in light of the poor economic fundamentals of other EU nations.

USDCHF Analysis

The USD/CHF pair is one of the most stable pairings. Naturally, this pair tends to correlate to EUR/USD, though CHF is generally more stable than the euro. Both economies have a significant financial sector, and therefore any changes in global financials have a significant influence, as investors flee to the stability of the dollar and franc. Depending on the status of the dollar, this pair is sometimes excellent for carry trades. This may be the best opportunity for profit on this pair in the future, if USD begins to inflate.