What is the CHF?
CHF (Swiss Franc)
Forex Trading Glossary
Quick Answer: The Swiss Franc is a safe-haven currency backed by Switzerland's stability and often influenced by Swiss National Bank policy.
What is the CHF (Swiss Franc)?
The Swiss Franc (CHF) is considered a safe-haven currency thanks to Switzerland's political stability, strong financial system, and persistent current-account surplus. The Swiss National Bank (SNB) frequently comments on exchange rates and may intervene to curb excessive appreciation.
Drivers of CHF
- Risk sentiment: CHF strengthens during global stress as investors seek safety.
- SNB policy: Negative rates and interventions influence direction.
- Eurozone exposure: Swiss exports are closely tied to the euro area.
- Capital inflows: Wealth management and safe-haven demand provide structural support.
Trading Tip
Monitor SNB statements and weekly sight deposit data for early clues about intervention risk.
Popular CHF Pairs
- USD/CHF: Tracks U.S. policy versus Swiss safe-haven demand.
- EUR/CHF: Reflects Eurozone fundamentals and SNB policy guidance.
- CHF/JPY: Pits two safe-haven currencies against each other.
- GBP/CHF: Sensitive to European political developments.
Related Terms
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