Trading knowledge in USD-CHF is an essential tool to have for any trader in general, especially the ones who know when to utilise such trades. The entry of the Swiss National Bank into Africa, which made the trade easier for traders in South Africa. The acronym CHF denotes Swiss Franc even though it stands for the rarely used term Confoederatio Helvetica Franc. The currency is officially used in Liechtenstein and Switzerland. The reason why CHF is special is because it is considered a safe haven for most South African traders.
This currency pair helps traders to protect their money and get the best value out of a particular trade, though the spread may sometimes be high. Also, if a South African trader decides to hold CHF, he or she will be dealing with a negative interest rate, which means that the trader will have to pay a Swiss bank for keeping his or her money safely. Negative interest rates are still new in the world, and its main aim is to ensure that traders do not leave money in savings accounts but use it to invest instead.
For a trader in South Africa to be able to know how to trade USD-CHF, it is important to be aware of the economic differences that exist between the Swiss and American economies. Following the news flow of the two countries is critical for any trader to make a profit out of the trade. IQ option analyses the most important news for South African traders so that they can make better-informed decisions before venturing into any trade. The most critical news from the US that influences the trading pattern of the currency pair are:
- Minutes of Federal Open Market Committee (FOMC) meetings
- Press conferences and statements
- Speeches by FOMC members
- Consumer Price Index (CPI)
- Gross Domestic Product (GDP)
- ISM non-manufacturing and manufacturing data
- Retail sales
- Non-farm Payrolls (NFP)
Meanwhile, the decisions of interest rate movements in the Swiss economy are mainly made by the Swiss National Bank (SNB). Moreover, inflation and KOF indicator also influence the nature of trade of the Swiss Franc. IQ option also advises traders in South Africa to be aware that the Swiss National Bank (SNB) constantly intervenes in the markets. Therefore, a sudden spike in the market without a valid reason should be a pointer to the presence of SNB.