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WIKI ANALYSIS
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This article describes a currency traded on the global foreign exchange market. View articles referencing this currency. |
The Swiss Franc (also known as the “Swissie”[1]) is the currency of the nation of Switzerland. It is denoted with a trailing CHF or, alternately, SFr. or Fr. (with the latter more typical internal to Switzerland). For example 16.00 SFr. would be read "sixteen Swiss Francs". This could also be written 16.00 CHF or 16.00 Fr.
The dollar (USD) against the Swiss Franc is mostly considered as the 'safe-haven' currency because part of the core value of swiss franc, CHF is backed up by gold. When gold price appreciates and/or during geopolitical challenges the swissie usually rises as investors look to safer grounds.
The chart at left shows the USD/CHF currency pair; the number of Swiss Franc equivalent to 1 U.S. Dollar (USD).
Forex Markets [1]
Trading Hours
The most active CHF trading hours are from London's opening market hours (3:00AM ET / 8:00 GMT), Swiss Economic (1:45AM ET / 6:45 GMT) and U.S. Economic (8:30AM ET/ 13:30 GMT).[1]
USD/CHF 10 year chart
Key Currency Crosses
The key currency crosses are
Things to know when trading The Swiss Franc (CHF)
The majority of time, USD/CHF moves on dollar dynamics and not Swiss dynamics. Therefore since many Commodities are priced in dollars, so when the dollar rises, commodity prices fall:
Nickname – The only nickname for the Swiss Franc is the Swissie which is a shortened version of the name.
Central Bank - The Swiss National Bank conducts monetary policy meetings 4 times a year and their decisions on interest rates could have significant ramifications for the currency market. Jean-Pierre Roth is the current Chairman of the Swiss National Bank
Most Active Trading Hours – We tend to see the most significant volatility in the Swiss Franc when Swiss and U.S. economic data are released.
What Does the Economy Rely On? – One of the unique aspects of Switzerland’s economy is that its bank secrecy laws have long made Switzerland a safe haven for investors. That has changed in recent years as the country has been pressured to reveal information on private investors sheltering the money in Switzerland. Although financial services are the primary driver of the economy, trade is also very important.
Who Does the Economy Rely on for Trade? – Switzerland’s largest trading partner is the Eurozone followed by the U.S.
Market Moving Economic Releases – Swiss economic data tends to impact EUR/CHF and CHF/JPY more than it does USD/CHF. Central bank rate decisions are usually the most market moving indicators, which mean that they can create the greatest volatility for any currency followed by the employment report, the consumer spending and inflation reports.
The Swiss Economy
Key Facts
The Swiss Economy is comprised of 64.5% Services, 34% Industrial, and 1.5% Agriculture. It's largest trading partners are Germany, US, Italy, France and U.K.. Some other key facts about the Swiss Economy:
- Service Sector Led by Financial Services
- Considered Safe Haven for Investors
- Known for their Banking Secrecy and Security
- Has One of the Highest Per Capita Incomes in the World
- Chemicals are Switzerland’s Main Exports
General Economic Statistics
| 2008 GDP Estimate | USD $492.6 Billion |
| Population: | 7.6 Million |
| Interest Rate^ | 0.25% Target Range |
| Inflation^^ | -0.30% |
| Trade Balance^^^ | CHF 4.5 Billion |
^As of May 2009 ^^As of April 2009 ^^^As of Q4 2008
Market Moving Economic Releases
- SNB Interest Rate Decision
- Retail Sales
- Consumer Prices
- UBS Consumption Index
- KoF Leading Indicators
- GDP (Gross Domestic Product)
- Unemployment Rate
References
- ↑ 1.0 1.1 1.2 FX360.com, EUSwiss Franc (CHF) Factsheet by Kathy Lien
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