The USD to CHF exchange rate has stayed relatively low this Wednesday. However, the geopolitical environment across the world has made investors worry. This could then lead them to search out safe havens to protect their funds. The Swiss Franc seems an ideal candidate and may benefit from the general lack of order in the world right now. 1 USD to CHF currently stands at 0.8929, which is a decrease of 0.05% over the course of a day. If we flip that, a CHF to dollar conversion will give us $1.12.
Now, traders are waiting for ZEW data to come out to further inform their decisions on what to do with the Franc.
Now, as for the dollar, the news seems to be positive. Composite PMI data has exceeded expectations, reaching 51 in October from 50.2. Manufacturing PMI data was also better than what analysts had been anticipating. There was also positive data for Richmond’s Manufacturing Index, again outdoing what analysts had been expecting.
All of this has relieved worries about the future trajectory of the US economy. While interest rates may remain high, investing seems to still be high, as well as industrial activity. If traders follow this data, investments may increase, as will the support for the US dollar. Subsequently, the USD/CHF pair should move upwards.
So it remains to be seen as to who wins out. More investment and stability will raise the USD to CHF exchange rate, while greater international discord may drag it down, benefiting the Swiss Franc.
The final indicator for the future could be the ZEW data, a survey on Swiss economic performance in October. There will be a release of the expectations for the GDP for the US on Thursday, alongside PCE numbers on Friday. This collection of economic figures and international events will both have an impact on the USD to CHF exchange rate.
