Known as the "Swissie", the pairing of the US dollar and the Swiss Franc provides a steadying appeal to veteran traders because of Switzerland's long-standing stable economic and political situation. The USD/CHF bridge together two of the world's largest economies, thus making it one of the most popular currency pairs in the fx market today accounting for almost 5% of the total yearly forex transactions.
Coded as the USD/CHF wherein it indicates how much francs it is needed to by one US dollar, this pair often gets negatively correlated with the GBP/USD and the EUR/USD.
If you're considering of investing on this currency pair right now then you better click on the button below to get started. This will open eToro's trading page for USD/CHF. Should you wish to continue, simply open an account with them but don't worry, this will only take a few minutes to do.
67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
We already know the history of the US dollar dating back to 1792 when the US Congress mandated in its constitution the creation of the US dollar as the nation's official currency. Other than the United States, it serves as legal tender in several other countries and is widely regarded today as the world's unofficial reserve currency.
The Swiss Franc goes back to the 1700s—almost the same period as the US dollar—when Switzerland still uses a variety of coins and bills in circulation. To regulate currency, the Swiss government put into law the creation of the Swiss Franc to become the singular monetary currency in the country.
Experiencing almost zero-inflation, the Swiss Franc is often seen as a "safe haven" currency and is backed up by gold reserves.
This currency pairing shows how much Swiss Francs (CHF) it takes to buy 1 US dollar (USD). For example, if the current rate of the USD/CHF is 0.85 and moves up to 1.08, then the USD has appreciated against the Swiss Francs it now cost more Francs to buy 1 US dollar.
On the other hand, if the value depreciates from 1.08 to 0.05, it now costs lesser Swiss Francs to buy one US dollar, this means the CHF has appreciated against the US dollar.
The value of this pairing indicates how much Swiss Francs is needed to exchange it into one US dollar. For example, if the pair is trading at 1.08, it suggests that it requires 1.08 Swiss francs to exchange it into 1.00 US dollar. If the rate is 0.9540, this means it costs only 0.9540 francs to buy 1.00 US dollar.
With the US dollar remaining as the most trusted currency on the planet and the Swiss Franc gaining price against the Greenback, there are still some factors that may affect the dream currency pairing of the Swiss Franc and the United States dollar. Here are some unforeseen forces you may need to look out for when you plan to trade this currency pair.
Traders prefer the safe refuge provided by this currency pair because it tends to offer high liquidity even during an economic crisis. This pair is also sensitive to economic and geo-political events, thus making it a more predictable currency pair. In this age of free-flowing information, any trader can easily get an abundance of economic, monetary and political data coming from both countries. This greatly helps traders in coming up with a correct analysis of the pair's value in the forex market.
However, the USD/CHF's volatility is lower compared to other currency pairs such as the GBP/USD or the EUR/USD. This means the USD/CHF offers lesser trading opportunities.
Traders can speculate on the price difference of currency pair of USD/CHF between the beginning and conclusion of the trade via Contract-for-difference (CFD).
CFD is a financial instrument and trading method that involves a brokering agreement between a broker and a trader, where one party agrees to pay the other party the difference in the price of the asset between the start and end of the trade.
eToro has a user-friendly interface and innovative trading platform that allows traders to trade forex on their own time without transaction fees. This online brokerage also allows its clients to trade for $30 for every $1 in their portfolio because it gives out a maximum of x30 leverage for currency pairs like USD/CHF.
Currently, the USD/CHF has a 52-week range of $0.87571 - $0.94722 with a 1-year return of 1.96%.
When this page was accessed, the value of the USD/CHF pair is
If you are, you can just click the button below and this will take you to eToro's online trading platform for USDCHF. Take note that this is the live platform but if you would like to explore or use it, you will have to open an account by clicking the "Sign up" button on that page.
eToro is a multi-asset platform which offers both investing in stocks and cryptoassets, as well as trading CFDs.
Please note that CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 67% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Cryptoassets are volatile instruments which can fluctuate widely in a very short timeframe and therefore are not appropriate for all investors. Other than via CFDs, trading cryptoassets is unregulated and therefore is not supervised by any EU regulatory framework.
eToro USA LLC does not offer CFDs and makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication, which has been prepared by our partner utilizing publicly available non-entity specific information about eToro.