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Swissy

The Swiss franc, and the pair USD/CHF; the classic European safe haven currency.

Switzerland's long record of low inflation, political neutrality and large foreign reserves makes the franc a destination for money leaving risk. In stressed markets the franc rises against almost everything, which is exactly when Swiss exporters complain and the Swiss National Bank starts to act.

USD/CHF has historically traded roughly inverse to fiber, since both are dollar pairs with European legs. The most famous single event in the franc's trading history is the swiss-franc-unpeg of January 2015.

Example: EUR/USD rises 0.6% while USD/CHF falls 0.5% on the same session. A trader long both pairs has partly offset their dollar exposure without meaning to.

Related: currency-nickname

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