USD CHF: Live Dollar-Swiss Franc Rate, Chart and Forecast
The USD CHF is one of the major currency pairs in forex. As such, USDCHF trading is prevalent, especially among short-term traders. In this guide, we will review the specifics of the USDCHF investing. We'll also explain the ins and outs of USDCHF trading by telling you exactly how to get started. We'll also look at the USDCHF forecast to determine if it's an excellent long-term investment as well. Finally, we will introduce you to an online broker we feel is ideal for USD to CHF trading.
What is USD CHF? Overview
The USD CHF currency pair belongs to the group of majors. The Swiss franc is the official currency of Switzerland, and in this case, it is traded against the US dollar. The Swiss franc and the USDCHF currency pair are often referred to as "Swissy". Some investor also call it simply “Dollar CHF”. The Swiss franc is considered a hard currency because of Switzerland's rigid banking and privacy laws.
In practical terms, the USD to CHF exchange rate expresses the price of 1 dollar in Swiss Franc. For example, a USD CHF exchange rate of 0.95 means that 1 dollar is worth 0.95 Swiss Francs. To follow the price of the Swiss Franc in Dollars, we must look at CHF USD.
It should also be noted that USD CHF is considerably less liquid than the Euro and the Pound; however, USD CHF remains a popular and easy to trade asset for investors.
Finally, investors should note that trading the USD CHF pair is done through an online broker. The online brokers will provide you with the trading platforms on which you will find the USD CHF charts in real-time. In this regard, we note that the broker ZFX, which we will present in detail later in this guide, offers particularly advantageous conditions for trading USDCHF.
USD CHF Chart
Below you will find a real-time USDCHF live chart. It shows the price of 1 USD to CHF.
How to Read the USDCHF Chart
The way the USD CHF chart and Forex charts in general work is slightly different from other assets such as stocks. Indeed, Forex charts show the price of one currency in another currency. In the case of the USDCHF pair, the chart shows the price of one dollar in Swiss Francs, as we have already explained above.
The first currency, which in this case is the dollar, is called the base currency. The second currency, in this case, the Swiss franc, is called the quote currency.
Traders should also note that it is possible to access Swiss Francs in US Dollars chart if in need to check the price of 1 CHF to USD. However, it is rare to be able to trade these currencies in this sense. Indeed, the CHF to USD conversion is mostly used by Swiss tourists on vacation in the United States to convert CHF to USD more efficiently and get an idea of prices in their local currency.
USDCHF Historical Data
In this section, we will analyse the USDCHF historical data. First, we will study the significant phases of the evolution of the US dollar to Swiss franc pair. Secondly, we will focus on the current context of the USD to CHF exchange rate.
USD CHF exchange rate History
From the mid 90's until the end of 2000, USD to CHF has shown a strong upward trend, going from 1.11 to an ATH of 1.83 in 5 years. Following this record high, the USDCHF began a 10+ year downtrend, resulting in an all-time low of 0.7066 in August 2011.
Since then, the USD CHF has gained some ground but has failed to regain the significant psychological threshold of 1.0000. A return above this threshold would be a strong long-term buying signal for USD CHF.
However, it is essential to remember that traders can profit from USDCHF rise, but also from a downtrend. This means that it doesn't matter which way the USDCHF is trending, as it is possible to make money on both the upside and the downside just as easily.
USD CHF Exchange Rate Today
Let's now look at the shorter-term context of the USD to CHF exchange rate. We will base our observations on the study of a weekly USDCHF chart.
Studying the evolution of the USD CHF exchange rate over the past few years, we can identify a downward trend that began following a peak at 1.0236 in April 2019. This downtrend pushed the USD CHF to a low of 0.8757 in early 2021. Since then, the USDCHF has rebounded and has sent several signals that a long-term uptrend has begun.
Thus, a long-term long position in the USD/CHF pair may be possible. However, remember that USD CHF trading and forex trading, in general are more suited to short-term trading. In short-term trading, the long-term trend does not matter, as traders focus on the daily fluctuations.
What Influences USD CHF Exchange Rate?
Trading the USD CHF currency pair relies on a detailed understanding of what influences price and rate changes. Let’s detail the main factors that affect the USD CHF exchange rate.
Fed and SNB Monetary Policy
As with all currency pairs, monetary policy is the most influential factor on the USD/CHF pair – and here specifically, the Fed's monetary policy and the SNB's monetary policy. The principle is simple: a rate hike or an expectation of a hike is a bullish factor for the currency in question. We will, therefore, also look at the interest rate differential between the two central banks.
As far as the most important events to follow regarding monetary policy are concerned, these are the monthly meetings of the monetary policy committees, the only time when central banks can rise or decrease interest rates.
Swiss economic data
The state of the economy has a major influence on central banks' decisions. Thus, it is essential to follow economic statistics, especially for Switzerland. We will be interested in data such as: the unemployment rate, the GDP, or industrial production. These data, weekly, monthly, or even quarterly, are available free of charge and in real-time on all economic calendars.
US economic data
It will also be essential to keep an eye on US statistics, as a much higher volume of US statistics is released each week. This means that most potentially significant events for the USDCHF pair will be US economic indicators. But in general, the focus will be on the overall direction of the US economy relative to the Swiss economy. A more robust US economy than a Swiss economy will be a bullish factor for USD to CHF.
Risk aversion and risk appetite
As the Swiss franc is considered a safe haven, primarily due to the strength of the Swiss banking system and the country's political neutrality, the market's risk appetite may influence the USD CHF's evolution. For example, in the event of international wars or geopolitical unrest, investors will tend to favour the Swiss franc over the dollar, driving the USD CHF pair lower.
USDCHF Forecast and Predictions
In this section, we will discuss the USDCHF forecast 2022. Let's start by looking at a table summarizing some of the forecasts we could find on the internet.
USD CHF Forecast 2022
As we can see, the USDCHF forecast 2022 vary significantly from one to another. Indeed, it is essential to know that medium and long-term predictions on the USDCHF pair and forex, in general, are mostly unreliable.
Unlike stocks, whose evolution depends mainly on the company's activity, which is more or less predictable, the trend of currency pairs depends on monetary policy and the general economic context. However, the factors governing monetary policy and the economy are so numerous that it is tough to make USDCHF forecast other than in the short term. This is why the USDCHF, and currency pairs in general, are mostly bought and sold in short-term trading.
Why Trade USD CHF Today?
Below we will summarize the main advantages of USD CHF that invite so many traders to like this currency pair.
As with all currency pairs, it is possible to trade USD CHF 24 hours a day. This is an advantage for those who wish to use USD CHF trading as an additional revenue stream, in addition to their regular business activity. With USD CHF, it is possible to trade in the evening and at night, which allows even the busiest people to make a few trades on the USD CHF pair every day.
The USD CHF pair, and currency pairs in general, gives you access to high leverage. In addition, the daily volatility of currency pairs such as USD CHF is quite high. This volatility, coupled with the leverage, means that the opportunities to make money are large and numerous with the USD CHF pair. However, one should not forget that the risk of loss equals the potential for gain, with the USD CHF pair as with any other investment.
Ability to trade economic indicators
Finally, trading economic indicators is an exciting strategy that can be applied to the USD CHF and other pairs. Indeed, the USD CHF pair can display violent movements when an economic indicator is released that deviates significantly from the consensus. In this case, it is possible to trade the USD CHF on a very short-term basis to take advantage of these rapid changes. However, this is a risky USD CHF trading strategy.
Where Can I Invest in the USD CHF Pair ?
ZFX is one of the best one to trade CHF to USD. Indeed, ZFX provides its clients with the MT4 trading platform, which is the most widely used globally thanks to its many technical analysis and automated trading advantages.
Also, as you can see by yourself with a demo account, the spread for USD CHF is usually lower than 1 pip. Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities.
How to Trade USD CHF Now
Trading USD CHF through the broker ZFX is very simple and fast. Indeed, the account opening is done entirely online, and takes only a few minutes.
1 - Register with ZFX
First, visit the ZFX website, and click on "Open an account". You will then have to fill in a registration form with several personal details, including your phone number, which will be verified by SMS.
After filling out the form, click on the "Next" button at the bottom of the page. Immediately after this step, ZFX will display your MT4 login and password, and invite you to download the platform.
2 - Make your first deposit
To do this, you will need to click on the "make a deposit" button on the screen that is displayed immediately after registration. You will then be asked to choose a payment method. Let's take Mastercard as an example:
On this screen you will be asked to indicate the deposit amount and then click on the "Confirm Deposit" button. You will then be asked for your credit card information before the final validation of the payment.
3 - Account verification
Finally, it will also be necessary to proceed with the account verification by sending supporting documents.
As shown in the image above, you will need to upload the documents directly to the ZFX website.
4 – Trade USD CHF
Once your documents are validated, you will then be ready to trade USD CHF. To do so, simply download ZFX MT4 and login using the details ZFX sent to you. Once logged in, select USDCHF and invest as you wish.
Tips for USD CHF Beginner Traders
With this guide nearing its conclusion, all that's left to do is provide you with a few final tips, some of which are common sense, that will help you put all the chances on your side to succeed in USD CHF trading.
Choose a suitable USD CHF trading style
Before you start trading USD CHF you will have to choose the style you will adopt. For example, if you have much time on your hands, you can go for scalping, requiring you to spend long hours every day in front of your screen. If you have less time available, day trading may be a more suitable solution. Indeed, USD CHF day traders can open positions in the morning and let stops and limits run to manage the exits of positions. Finally, if you don't have more than a few hours a week to devote to trading, you should turn to swing trading, which requires little time.
Choosing a good USD CHF broker
When choosing a broker, make sure that it is regulated. Indeed, this ensures that you are dealing with a reliable intermediary. The 2nd criterion concerns the trading platform, which must include all the essential functions for market analysis, such as real-time charts. You should also make sure that it is user-friendly. Another critical point to consider is, of course, the fees. With USD CHF, the most important is the spread, meaning the difference between the buying price and the selling price.
Practice with a demo account
ZFX allows you to test its trading platform for free, and practice trading USD CHF without taking any risks. Indeed, demo trading accounts allow you to apply what you have learned without risking losing money. Thus, a demo trading account is a must for any trader who wants to succeed in forex and in the USD CHF pair.
Bottom Line: Is USD CHF a Good Investment Now?
The USD CHF is one of the most important currency pairs in forex and is, therefore, an exciting investment in many ways. Indeed, it has many key advantages and strengths that make the dollar - franc a preferred trading instrument, especially for traders interested in the short term. In particular, it is a currency pair that displays volatility that provides many opportunities. But it is also an instrument with clear influences that are easy to analyse.
If this guide has helped you understand that USDCHF trading could be right for you, the next step is choosing an online broker. We have reviewed many of them in writing this guide, and there is one that stands out more than the others. This is ZFX, a regulated online broker that offers the popular MT4 platform and has one of the lowest USD CHF spreads on the market.