Compare Forex brokers and trading sites with tight USD/CHF spreads, high leverage and strong execution:
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).
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.
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.
Market Overview Analysis by NordFX covering: EUR/USD, GBP/USD, USD/JPY, USD/CHF. Read NordFX's latest article on Investing.com UK.and more » More »
This pair has been in a decline even before the bullish trend in the USD suffered a serious setback and deep pullback. However, the past few days have suggested that the price may be bottoming at the support level of 1.0050 and this would make sense ... More »
USDCHF (1.0069): USDCHF posted a strong reversal off the 1.0061 – 1.0014 support level and could see a near-term move to the upside. Expect USDCHF to continue making a minor correction to the upside towards 1.0231 – 1.0166 region where a potential ... More »
Tell your friends about us:
Trading foreign exchange, contracts for differences or spread bets on margin carries a high level of risk and may not be suitable for all investors. You could sustain a loss of some or all of your funds if the markets move against you. For this reason, you should not invest more than you could afford to lose. ForexBrokersAZ.com does not accept deposits, advise on investments, deal in investments (as agent or principal) or arrange deals in investments. Information published on this website and in our external communications is factual and for information purposes only. It does not constitute financial advice under the Financial Services and Markets Act 2000.