Way to Fundamentals: All about USD/CHF

Way to Fundamentals: All about USD/CHF

20 September 2014, 09:11
Damiano Fabiański
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USDCHF

Known increasingly as the "legacy pair" as trading activity moves from USD/CHF to EUR/CHF.

Because interest rates in Switzerland are so low, the CHF is also a popular funding currency for carry trades. Because growth in the Swiss economy has been slow for some time, many investors are entering into USD/CHF as a carry trade, making the pair extremely sensitive to any changes in the interest rate outlook for either the US or Switzerland.

USD/CHF is most active during European open hours (3 AM to 4:30 AM EST) through the early US trading session (7AM to 10 AM EST).

  • Average daily range: 127 pips
  • Popular funding currency for carry trades since interest rate is so low
  • Good for: trading during certain times of the day, when Europe and US open
What moves USD/CHF?
  • Geopolitical tension
  • Gold prices
  • SNB monetary policy
Fundamentals to Watch
  • FOMC Rate Decisions
  • US Non Farm Payrolls
  • US Current Account
  • US Trade Balance
  • US TIC Data (Treasury Inflow Capital)
  • US Retail Sales
  • FOMC Minutes
  • Swiss KoF Leading Indicators
  • Swiss CPI Consumer Price Index
  • Comments from Swiss officials
  • Swiss GDP
  • SNB Rate Decisions
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