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USD/CHF from 0 Pips

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The Swiss franc is one of five Major currencies. However, this isn't because of its trading volumes: USD/CHF accounts for just 4% of global foreign exchange volumes (less then than USD/GBP, USD/AUD or even the USD/CAD currency pairs).

A safe haven currency

Instead, the Swiss franc acts as a safe haven - a currency that investors turn to as a store of value rather than a source of capital appreciation at times of market turmoil. For example, the Swiss franc appreciated by 15% against the Dollar from 1.1964 on July 1st to 1.3779 on August 11th following the downgrade of the United States' credit rating by Standard & Poor's.

As good as gold?

Switzerland's neutrality, stable political system and secretive banking system make Switzerland a popular destination for risk-averse investors. However, the currency's long standing ties to gold also explain its role as a store of value. Formerly, the Swiss National Bank (SNB) was required to redeem banknotes into gold on request. Until 1997, the Swiss constitution required that at least 40% of the currency be backed by gold reserves. Since, a constitutional amendment lowered the threshold to 25% and the bank's gold reserves have fallen. However, the Swiss franc maintains to this day a strong positive correlation with gold. When the price of gold rises, the Swiss franc is likely to appreciate in response.

Latest news

USD/CHF Weekly Outlook - Action Forex Action Forex

USD/CHF Weekly Outlook. USD/CHF dropped to as low as 0.9881 last week but lost momentum ahead of 0.9860 support and recovered. With a temporary low ...and more » More »

Forex technical analysis: USDCHF tumbles below 200 day MA but... ForexLive

The last tests of the 200 day MA stalled the fall. Falling below SHOULD give sellers the advantage but that depends on the things like risk events. The CHF tends to be a safe haven currency and gold going up and bond yields moving lower, the CHF can ... More »

CHF and JPY in focus again as USD supply generally prevails ForexLive

Earlier I warned to expect USDJPY offers/res around 111.50 (later confirmed in the order board) and so it's proved with the pair failing from 111.48 to 111.05. Similarly USDCHF has had a strong retreat back into 0.9900 from 0.9950. While I remain a ... More »

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