What is ‘CHF’?
CHF in forex refers to the Swiss Franc, which is the currency used in Switzerland. It is one of the major currencies traded in the foreign exchange market. The Swiss Franc is known for its stability and is considered a safe-haven currency. It is often sought after by investors during times of economic uncertainty.
Example of ‘CHF’
The CHF is often considered as a safe-haven currency. During times of economic uncertainty or market turmoil, investors tend to seek refuge in safe-haven assets, such as the Swiss Franc. As a result, the demand for CHF increases, causing its value to appreciate against other currencies.
For instance, if there is a global financial crisis, traders may sell off riskier currencies and buy CHF, leading to a rise in the value of the Swiss Franc. This phenomenon can be observed in currency pairs like USD/CHF or EUR/CHF, where the CHF strengthens against the USD or the EUR.