Created
: 2024.10.25
- English
- English
- What's Myforex
- Share
- Use tools
- Get information
- What's New
- Help center
- About us
- Customer support
- Terms and policies
-
-
PortfolioShare your portfolio and performance in real time -
Events & contestsEvents and contests held by retail brokers around the world
-
-
Real-time spread comparisonCompare spreads of major retail brokers in real time -
Volatility analysisVisualize volatility as a measure of daily market activity -
Swap point comparisonCompare buy and sell swap values for each broker by symbol -
Market rates & chartsCheck prices for all instruments offered by each broker -
IndicatorsProviding in-house developed indicators for MT4/MT5 -
Trading calculatorsCalculation tools for each broker to help you trade
-
-
World FX newsLatest news on forex and cryptocurrencies from around the world -
Broker informationTrading information of retail brokers worldwide -
MetaTrader4/5 user guideUser guide collection for the latest MetaTrader4/5 -
Economic calendarRelease calendar for indicators from official sources of major economies
USD/CHF hovers around 0.8650, upside likelihood appears possible as the US election looms
World FX news
Breaking news
USD/CHF hovers around 0.8650, upside likelihood appears possible as the US election looms
New
2024.10.25 15:38
2024.10.25 15:38
2024.10.25 15:38
- USD/CHF may appreciate further due to fading odds of bumper rate cuts by the Fed in 2024.
- The US Dollar receives support from market caution ahead of the US presidential election.
- The recent lower Swiss inflation rate increased the dovish sentiment surrounding the SNB.
USD/CHF remains steady after registering losses in the previous session, maintaining its position above 0.8650 during Asian trading hours on Friday. This level is near its two-month peak of 0.8686, reached on Wednesday.
The strength of the USD/CHF pair could be linked to the robust performance of the US Dollar (USD), driven by rising expectations that the Federal Reserve (Fed) will take a less aggressive approach to interest rate cuts than previously thought.
Additionally, the Greenback is bolstered due to uncertainties regarding the upcoming US presidential election. Vice President Kamala Harris leads in the six-day poll, which closed on Monday, held a marginal 46% to 43% lead over former President Donald Trump, a new Reuters/Ipsos poll found.
On Thursday, Republican nominee Donald Trump stated that the Trump administration will build an economy that lifts up all communities in the United States (US). Meanwhile, Vice President Kamala Harris enjoyed the backing of rock legend Bruce Springsteen, entertainer Tyler Perry, and former President Barack Obama at a rally in Georgia.
The Swiss Franc (CHF) could face challenges due to heightened expectations of another interest rate cut by the Swiss National Bank (SNB) at its upcoming December meeting. This could be attributed to the recent inflation rate, which stood at 0.8% in September, marking a three-year low and down from 1.1% the previous month.
The Swiss Franc may restrain its downside due to safe-haven flows amid uncertainties regarding Middle East situation. Traders watch for Israel's response to Iran's missile attack on October 1. In parallel, US and Israeli officials are preparing to resume talks on a potential ceasefire and the release of hostages in Gaza in the coming days.
US Secretary of State Antony Blinken stated Thursday that the United States does not support a prolonged Israeli campaign in Lebanon, while France has advocated for an immediate ceasefire and diplomatic efforts.
Swiss Franc FAQs
The Swiss Franc (CHF) is Switzerland's official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country's economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc's value, causing a turmoil in markets. Even though the peg isn't in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country's currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
The Swiss National Bank (SNB) meets four times a year - once every quarter, less than other major central banks - to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc's (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank's currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland's main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.
Last updated
: 2024.10.25
Related articles
NZD/USD: Levels to watch are 0.5985 and 0.5970 - UOB Group
6 minutes agoGBP: Reeves triggers first gilt shake-up - ING
9 minutes agoAUD/USD: Support at 0.6585 is likely out of reach for now - UOB Group
12 minutes agoUSD/CAD clings to gains near 1.3850 as BoC to continue aggressive rate-cut stance
14 minutes agoEUR: ECB now in 'gut feeling' phase - ING
17 minutes agoEUR/USD holds onto recent gains despite increasing bets of large ECB rate cut
34 minutes ago
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
Was this article helpful?
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Thank you for your feedback.
Thank you for your feedback.
Most viewed
NZD/USD: Levels to watch are 0.5985 and 0.5970 - UOB Group
Oversold decline could extend to 0.5985 before stabilisation can be expected.
New
2024.10.25 19:23Gold trades sideways, underpinned by continued safe-haven flows
Gold (XAU/USD) stays stuck in this week's mini range, exchanging hands in the $2,720s on Friday, as the precious metal is still supported by safe-haven flows due to a high level of geopolitical risk.
New
2024.10.25 19:21GBP: Reeves triggers first gilt shake-up - ING
Unlike her ECB colleagues, Bank of England hawk Catherine Mann stuck to her usual tone yesterday, staying relatively pessimistic on disinflation and pointing to risks the BoE may cut too much too early.
New
2024.10.25 19:20AUD/USD: Support at 0.6585 is likely out of reach for now - UOB Group
Strong momentum indicates further the Australian Dollar (AUD) weakness; the significant support at 0.6585 is likely out of reach for now.
New
2024.10.25 19:16USD/CAD clings to gains near 1.3850 as BoC to continue aggressive rate-cut stance
The USD/CAD pair turns sideways in Friday's European session after posting a fresh 11-week high at 1.3870 on Thursday.
New
2024.10.25 19:15EUR: ECB now in 'gut feeling' phase - ING
Bundesbank president Joachim Nagel was asked on two separate occasions during his stay in Washington whether he would consider a 50bp cut in December, and both times, he refrained from explicitly pushing back, ING's FX analyst Francesco Pesole notes.
New
2024.10.25 19:11EUR/USD holds onto recent gains despite increasing bets of large ECB rate cut
EUR/USD strives to extend Thursday's recovery above 1.0800 in Friday's European session.
New
2024.10.25 18:54EUR/USD: Rebound risks are here - OCBC
EUR saw modest rebound amid USD pullback, and European PMIs surprised to the upside.
New
2024.10.25 18:38GBP/USD: Set to decline further to 1.2860 - UOB Group
The Pound Sterling (GBP) is expected to trade in a range between 1.2930 and 1.3000.
New
2024.10.25 18:34USD: Dollar rally may only be temporarily halted - ING
The loss of momentum in the US Dollar (USD) rally we saw yesterday doesn't seem to be the beginning of a broader trend.
New
2024.10.25 18:31Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy
