You will learn about the following concepts
- Introduction to USD/CHF
- Exchange rate factors
This currency pair is fairly popular among binary options traders. The USD/CHF is not as volatile as the EUR/GBP pair for example. However, the Swiss franc may draw the attention of binary options traders, when the political or economic climate in Switzerland changes dramatically. As soon as the volatility starts to decrease, traders usually lose their interest.
The safe haven status of the franc during times of turmoil can be used as an advantage by the trader. However, you should keep in mind the fact that the US dollar also tends to be stable during such times. Therefore, predicting the movement of USD/CHF may appear to be not that easy and straightforward, as you probably expect.
If you are a beginner in the field of binary options trading, then it would be a bit difficult for you to spot the signs, which can help you forecast the value of the Swiss franc. However, we offer you a simple tip that you may find helpful – the franc has always been correlative with the Euro, so you might want to keep an eye on it.
If the Euros value goes up, the franc will soon follow its movement. This comes here to prove that if the value of the Euro is dramatically changing, you can be sure the franc will stick to it as well. This has happened on many occasions in the past, so it could be considered as a tendency.
It is no secret that binary options traders tend to go for the most popular currency pairs such as EUR/USD, EUR/GBP, GBP/USD, USD/JPY, USD/CHF. However, at times movement prediction of the last pair may be a bit tricky, because volatility of both currencies is really low – this can leave you without business for days.
We recommend you to try other currency pairs if you are making your first steps in binary options trading. This will help you get familiar with the basics of trading such assets. Once you feel confident, you can try USD/CHF.