EXCHANGE RATE OF USDCHF ON FOREX

This currency pair is one of the most popular one from New York to Tokyo to trade on the Forex market. The currency pair has a loyalty of traders from all over the world. The reason for this is deeply simple — the presence of the U.S. dollar as the base (main) currency and one of the very reliable currencies  the Swiss franc.

These two currencies are independent of each other, which allows a trader to use the US dollar price fluctuations and consistently get a large profit when the price changes, since the Franc has almost no fluctuations or they are not that significant.

But still, the asset price consists of two currencies, therefore it is impossible to completely delete the franc from the calculations.

The world price of the Swiss franc is clearly depends on the internal events happened in Switzerland. The currency pair is sufficiently constant, monotone and predictable, which attracts the traders; this is one of the few currencies that has remained constant during wars and financial crises of the 20th and 21st centuries. It's worth to notice that the profit from trading is quite small, but regular. This helps a beginner to avoid deposit losses, but new traders know little about it. The main factors which influence the franc rate may be:

– Retail sales index;

– Fluctuations in Swiss GDP;

– Business Index data;

– other factors that are usually less popular.

During the recent years the Swiss government is attempting to fight the strong stability of its currency and, as a rule, these are the interventions of the country Central Bank. The result of such market manipulations is the number of the Swiss franc units to sale increases sharply and the price goes down.

The US dollar price is under pressure by many more factors; the US dollar has long been considered one of the most volatile currencies in the world, since the large price fluctuations can be affected by the news in the U.S. and outside the country. The reason is simple: the US dollar is considered the primary currency of the whole world. Very often jumps on the dollar chart cause the words of presidents and leaders of countries, as well as of the big financial organizations. As an example, a decline in the dollar part in China’s gold and foreign exchange reserves.

In this currency pair the US dollar is shown as the base currency, and the quoted one is the franc, which means, the value of the price means how many francs are given for one dollar. It's almost the middle of 2019, the market rate of this currency pair stands at 1.0088 — almost in parity (one currency in the market is equivalent to the second one), we can say we are watching a historical moment. The asset price usually has 4 digits after the comma, so here one item is expressed as 0.0001, but there are the brokers who indicate 5 digits, but it makes sense only trading scalping.

The USD/CHF currency pair trading

The new Forex traders should pay attention to this currency pair at first because it price can be easy to predict. There are no sharp drops and boosts, this is due to the fact that this currency pair has low volatility, although it has high liquidity. It is enough to predict the price of the dollar for successful Forex trading.

The market rate of the USD / CHF is a litmus paper, when analyzing other pairs: if the US dollar price starts to rise relative to the franc, then in the near future there will be the growth in all currency pairs that includes the franc.

The franc downward trend occurs after the release of bad news and forecasts that concern to the United States, the price increases when the Swiss bank interventions or the good news in the US economy come out.

The clever way of trading this pair is the following one: the currency pair is often speculated on the difference in its interest rates and the balance of open trades for the next day, or, more simply, on a swap.

Recommendations relating to all currency pairs with dollar are the following: if you want to get the largest profit, but also are ready to take the greatest risk, you need to trade during the New York session, if you need a calm trading along a trend and minimum risk then you should trade during the Asian session.