USD/CHF (U.S. Dollar/Swiss Franc)

AAA

DEFINITION of 'USD/CHF (U.S. Dollar/Swiss Franc) '

The abbreviation for the U.S. dollar and Swiss franc (USD/CHF) pair or cross for the currencies of the United States (USD) and Switzerland (CHF). The currency pair shows how many Swiss francs (the quote currency) are needed to purchase one U.S. dollar (the base currency).

Trading the USD/CHF currency pair is also known as trading the "Swissie".

INVESTOPEDIA EXPLAINS 'USD/CHF (U.S. Dollar/Swiss Franc) '

The value of the USD/CHF pair is quoted as 1 U.S. dollar per x Swiss francs. For example, if the pair is trading at 1.50 it means that it takes 1.5 Swiss francs to buy 1 U.S. dollar.

The USD/CHF is affected by factors that influence the value of the U.S. dollar and/or the Swiss franc in relation to each other and other currencies. For this reason, the interest rate differential between the Federal Reserve (Fed) and the Swiss National Bank (SNB) will affect the value of these currencies when compared to each other. When the Fed intervenes in open market activities to make the U.S. dollar stronger, for example, the value of the USD/CHF cross could increase, due to a strengthening of the U.S. dollar when compared to the Swiss franc.

The USD/CHF tends to have a negative correlation with the EUR/USD and GBP/USD currency pairs. This is due to the positive correlation of the euro, Swiss franc and the British pound.

RELATED TERMS
  1. Pip

    The smallest price change that a given exchange rate can make. ...
  2. Forex Spot Rate

    The current exchange rate at which a currency pair can be bought ...
  3. Currency

    A generally accepted form of money, including coins and paper ...
  4. Quote Currency

    The second currency quoted in a currency pair in forex. In a ...
  5. Base Currency

    The first currency quoted in a currency pair on forex. It is ...
  6. Electronic Currency Trading

    A method of trading currencies through an online brokerage account. ...
Related Articles
  1. Options & Futures

    A Primer On The Forex Market

    Moving from equities to currencies requires you to adjust how you interpret quotes, margin, spreads and rollovers.
  2. Forex Education

    Currency Exchange: Floating Rate Vs. Fixed Rate

    Baffled by exchange rates? Wonder why some currencies fluctuate while others are pegged? This article has the answers.
  3. Forex Education

    The Swiss Franc: What Every Forex Trader Needs To Know

    Find out what you need to know before you start trading the Swiss franc.
  4. Forex Education

    Commodity Prices And Currency Movements

    Find out which currencies are most affected by fluctuations in gold and oil prices, and improve your trading.
  5. Forex

    How are international exchange rates set?

    International currency exchange rates display how much one unit of a currency can be exchanged for another currency. Currency exchange rates can be floating, in which case they change continually ...
  6. Forex Education

    Profiting From A Weak U.S. Dollar

    Learn how to allocate your investments when the U.S. dollar is down.
  7. Forex Education

    8 Basic Forex Market Concepts

    We go over some of the things you need to understand before you can trade currencies.
  8. Forex Education

    Forex: Identifying Trending And Range-Bound Currencies

    Gain a trading edge by learning how macroeconomic forces play out differently for various pairs in the forex market.
  9. Forex Education

    The New World Of Emerging Market Currencies

    Take advantage of foreign currency markets without stepping out of your house.
  10. Forex Education

    What's the difference between bid-ask spread and bid-ask bounce?

    Understand the difference between the bid-ask spread that determines the buy or sell price for a stock and a bid-ask bounce, a situational price volatility.

You May Also Like

Hot Definitions
  1. Multiplier Effect

    The expansion of a country's money supply that results from banks being able to lend. The size of the multiplier effect depends ...
  2. Command Economy

    A system where the government, rather than the free market, determines what goods should be produced, how much should be ...
  3. Prospectus

    A formal legal document, which is required by and filed with the Securities and Exchange Commission, that provides details ...
  4. Treasury Bond - T-Bond

    A marketable, fixed-interest U.S. government debt security with a maturity of more than 10 years. Treasury bonds make interest ...
  5. Weight Of Ice, Snow Or Sleet Insurance

    Financial protection against damage caused to property by winter weather specifically, damage caused if a roof caves in because ...
  6. Weather Insurance

    A type of protection against a financial loss that may be incurred because of rain, snow, storms, wind, fog, undesirable ...
Trading Center