Before the Helvetic Republic set in, over 860 coins of different types were circulated in Switzerland. In 1798, Franc was introduced and was used with a number of other foreign currencies until 1803. In 1850, the Federal Coinage Act finally replaced all currencies with Swiss Franc. Now, Swiss currency goes with the tag of being a hard currency in the forex market. Its market is free from sudden fluctuations and the USD CHF exchange rate forecast is always almost accurate.
Importance of Swiss Franc
This has made the CHF one of the most stable global currency and investors prefer to for this currency at times of financial uncertainty. Swiss Franc is the sixth most traded currency in the foreign exchange market. Although it’s reliable and stable, proper USD vs CHF forecast is necessary before opting for this currency.
Why is forecast necessary of this stable pair?
However stable it may be, a country’s economy goes a long way to deciding its currency’s valuation. Recent studies show that Switzerland’s economy is unlikely to rise. Since 2014, Switzerland’s retail sales have been following a downward trajectory with no sign of improvement in recent years. Economic growth has also fallen from 1.9% in 2014 to 0.9% in 2015 with a steady increase in population and refugee count.
Forex forecast USD CHF will take all these factors into account, along with Switzerland’s employment rate, inflation rate and also it's speculated GDP growth to provide a detailed analysis of the future behaviour of CHF. Recent predictions suggest that Switzerland is likely to grow by 1.1% in GDP in 2016 which may hit the 1.4% mark in 2017. A proper forecast may enable an investor to take this fact into account and make a profit in the process.
When to invest in Swiss franc?
Just because an investor is going through a financial instability or the country is expected to grow in 2017, it does not serve as proper reasons to transact with CHF. Say, the current market quote for the USD/CHF pair stands at 0.9884. This means that a trader will receive nearly equal amount of CHF by exchanging with USDs.
If the USD vs CHF forecast predict that market quote is set to hover around the 0.9880 mark over the next few months, investing in this pair will definitely not fetch immediate returns. Also, a trader is not expected to wait till 2017 for the market to rise again.
Thus, proper USD CHF exchange rate forecast takes into account all the past data and present economic scenarios to develop a behaviour-curve for this pair. Analyse the same and put in a timely order. Go for forecasting and invest wisely.
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.