|Member Sentiment Bullish|
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.
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.
March 10, 2014 at 10:01 AM • Comment
Key Fundamental Forex Events and Forecasts for the Coming Week The following table lists the key economic data and other events that are due out during the week of March 10th–March 14th, with release times displayed for the GMT time...Read More
March 10, 2014 at 9:10 AM • Comment
GBPUSD Poised for Bull Extension Cable ($GBPUSD) aims through 1.6820 for 1.6877 A still firm bias, still holding and advancing from the 13-day EMA, now 1.6670, having defended this support on a closing basis over the past two weeks....Read More
March 07, 2014 at 11:57 AM • Comment
Key Fundamental Forex Events for the Week of March 3rd through March 7th The following table lists the key economic data and other events that came out during the week of March 3rd through March 7th, with release times...Read More
March 07, 2014 at 9:42 AM • Comment
USDCAD Poised Into Key Data USDCAD shifts to a neutral position; breakout levels 1.0900 and 1.1160 through Employment data A still more defensive tone after a push below the 13-day EMA for a setback to push below 1.0975/65 to...Read More
March 05, 2014 at 6:34 PM • Comment
USDJPY top intact for bear bias to 100.75/60/20 targets this week USDJPY capped by 102.35; risk back lower to 100.75/60/20 key support area * * A far better rebound than anticipated on Tuesday, but still below the small down trend line...Read More