Cart review: USDCHF currency pair

The Swiss Franc, although slightly less liquid than the Euro and the Pound, is still a currency willingly purchased by foreign exchange investors. Most likely, the cause of the problem of periodic high volatility of this currency is international political and / or economic instability. When both political and economic turmoil is perceptible, investors will flee to the safe Swiss Franc. However, as volatility decreases, the franc will receive less interest. The currency pair is in the basket overview today USDCHF.

The value of the franc in comparison with other currencies often increases during times of increased volatility. However, it is difficult to predict the relative value of the Swiss franc compared to the US dollar. This is because the US dollar is also seen as a safe haven in times of uncertainty. Thus, it is not always easy to tell whether the Swiss franc or the US dollar will be the main source of security in an international crisis.

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During less volatile time periods, investors Forex they should remember that the Swiss franc has a very high correlation to the euro. When the euro rises in value, the franc usually follows its example. If we see an increase or decrease in the euro without a corresponding movement of the franc, it is worth considering starting a transaction, believing that the franc will eventually continue its historical correlation with the euro. However, keep in mind that although this type of strategy is extremely popular (and often profitable), there is no guarantee that the markets will always operate this way.

Swiss franc and Swiss economy

Switzerland is widely regarded as a stable, safe and relatively prosperous country. In the shade Incubus and with a reputation for neutrality, Switzerland has long been viewed as a separate world. From a financial perspective, this reputation was strengthened by the infamous secret of the Swiss banking system. Although Swiss banking regulations have been somewhat relaxed recently, Switzerland remains the international center of private banking, insurance and investment management.

Swiss citizens have also long enjoyed one of the highest living standards in the world. Switzerland still remains outside the European Union in order to maintain its neutral status. However, this country acts as an intermediary in transactions, e.g. with the United States and many other countries around the world. Switzerland is also home to large international concerns, such as banking giants: UBS and Credit Suisse, and international corporations.

The currency of Switzerland - the franc - plays a very important role in international capital markets. Due to Switzerland's history of political neutrality and its reputation for stable and discreet banking, the Swiss Franc is widely viewed as a haven for international capital markets. This is why many forex investors have decided to keep some of their assets in Swiss francs. In times of international turmoil, investors often resort to the safety of this currency. For this reason, when volatility in the financial market increases, investors often buy the Swiss franc at the expense of other currencies.