Introduction to the CHF/HUF Pair

The CHF/HUF (Swiss franc/Hungarian forint) is an acronym for the currency pair or cross of the Swiss franc and Hungarian forint. The currency pair asks the reader how many Hungarian forints are needed to buy one Swiss franc (the base currency). The sum of the CHF/HUF pair per x Hungarian forints is quoted as 1 Swiss franc. If the pair sells at 1.5 this means it takes 1.5 Hungarian forints to buy 1 Swiss franc. This currency pair would be influenced by the interest rate gap between the Swiss Central Bank (SNB) and the Hungarian national bank (Magyar Nemzeti Bank – MNB).

About the CHF

CHF is the abbreviation for the Swiss franc, Switzerland’s recognised legal tender. CHF stands for Confoederatio Helvetica Franc, where the Latin term for the Swiss confederation is Confoederatio Helvetica. It is the only franc that is now distributed since the other nations of Europe, who used to denominate their currencies in francs, accepted the euro. The Swiss franc is referred to by currency market traders as the Swissie and is the world’s seventh-most exchanged currency. The franc is also Liechtenstein’s currency and legal tender and is also used in the Italian Campione d’Italia exclave. The banknotes are issued by the Swiss National Bank (SNB), and the federal mint, Swissmint, circulates coins.

About the HUF

The HUF (Hungarian forint) is Hungary’s national currency, although, at this stage, the country has not accepted the euro (EUR). The forint derives its name from gold coins named fiorino d’oro, minted in the middle ages by the town of Florence. The forint splits down into 100 fillers but these coins are no longer circulated as legal tender.
The Hungarian National Bank is the central bank of the region, which oversees the forint’s issuance and circulation. Paper banknotes have 500, 1000, 2000, 5000, 10,000, and 20,000-forint denominations. Coins have denominations of forints of 5, 10, 20, 50, 100, and 200. The adoption of the forint on 1 August 1946 was a critical move in stabilising the Hungarian economy in the post-World War II period and the currency remained fairly stable until the 1980s. The forint’s value was negatively impacted by the transition to a capitalist economy in the early nineties; inflation peaked at 35% in 1991. Inflation is in single digits since 2001, and the forint has been considered fully convertible. As a member of the European Union, the Hungarian government’s long-term aim could be to merge the forint with the Euro.

Tips for Trading CHF/HUF

Trading exotic currency pairs like the CHF/HUF is not easy because of the low trade volume among these pairs. There is a marked contrast from the main currency pairs, better known as the majors and the minors. Employment statistics and gross domestic product (GDP) from both countries are a couple of the economic factors that impact the currency pair significantly.
Trading exotic currencies may differ greatly from the amount of interest seen in the exotic currency market from trading majors or minors. The relative lack of foreign currency market operation means that these currencies would bear a high risk and tremendous trade expense but such combinations can be perfected with a steady approach and the right trading temperament. Spreads on foreign currency prices are higher than their counterparts for majors or minors. When selling exotic currencies, traders should take care and be mindful of the higher gap when calculating future profits.
It is not always easy to trade exotic currencies. It is primarily a product of the state of the developed countries’ stock markets and their fast fluctuations, which will inevitably result in a sudden increase or decline in the value of the country’s currency. That is why it is important to learn the fundamentals of how the market works and keep up-to-date with the country-specific fundamental developments so you can be prepared for those changes.
Foreign currency sets are not for everyone. High mark-up costs and large bid-ask spreads typically require long-term profit outlooks that require endurance and a solid understanding of geopolitical and economic impacts and development. To be successful with exotic currency pairs, the personality of one’s trading has to be combined with the correct skills and risk.
In terms of global liquidity, the Swiss franc (CHF) ranks fourth, behind the US dollar (USD), euro (EUR), Japanese yen (JPY), and British pound sterling (GBP). Forex traders speculate on the strength and weakness of CHF through currency pairs which create real-time comparative value. The best times for trading the Swiss franc track the announcement of economic results, as well as open hours at exchanges in shares, options, and futures.
CHF crosses are vulnerable to economic and political macro events that cause highly correlated price action across stocks, currency, and bond markets around the world.


Economic Data that Influences USD/SEK

Hungary’s economy is a high-income mixed market, rated by the Economic Complexity Index as the 10th most dynamic economy. Hungary is a nation with a very strong human growth level and skilled labour force, with the world’s 13th lowest wage inequality. The Hungarian economy is the world’s 57th largest economy (out of 188 countries measured by the IMF) with an annual production of $265,037 billion and ranks 49th in the world in terms of GDP per capita determined by the purchasing power ratio.
Hungary has an export-oriented consumer economy with a heavy focus on international trade, making it the world’s 35th largest export economy. Hungary has moved from a centrally-controlled to a market-driven economy, with a per capita GDP of about two-thirds of the EU-28 average. The government has, however, been more interested in economic policy in recent years.
Budapest has adopted unorthodox economic strategies to raise household demand and has focused on growth-generating infrastructure initiatives sponsored by the EU. Systemic economic problems include corruption, labour shortages caused by population changes and migration, widespread rural poverty, susceptibility to shifts in export demand, and a heavy dependence on Russian energy imports.
On the other hand, Switzerland’s economy is one of the most developed free-market economies in the world. The service sector, especially the Swiss banking industry and tourism, has come to play a significant economic role. In the 2015 Global Innovation Ranking, and the 2017 Global Competitiveness Survey, Switzerland’s economy ranked fifth in the world. According to figures from the United Nations for 2016, after Liechtenstein and Luxembourg, Switzerland is the third richest landlocked country in the world, and along with the latter and Norway, the only three countries in the world with a GDP per capita above US$70,000 that are neither island nations nor mini-states.



The Swiss franc is a haven currency which ensures that the franc will always rise in periods of global economic turmoil or high uncertainty. The two most famous safe haven currencies are the Swiss franc and the Japanese yen. This is because Switzerland is considered largely financially and politically stable. During the early stages of the Great Recession the Swiss franc appreciated, exempting the Japanese yen, against all major trading partners. At the beginning of 2007 to mid-2008, the USD plummeted against the CHF but when the U.S. stock market selling increased at the end of 2008, more buyers started to pour back into the USD, seeing it as a comparatively better investment than the CHF.


The Swiss franc has risen significantly in value over the past 15 years, versus both the US dollar and the G.B. pound. In recent years the franc has been strengthened by factors such as the European debt crisis, and the US Federal Reserve’s accommodative monetary policy. Currencies deal as pairs, and as paired with another currency, they are either strong or weak.
The European debt crisis led creditors to search for a safe haven in the Swiss franc and lax monetary policy limited the US dollar’s appeal. The sharp spike in the Swiss franc in 2015 was primarily attributed to one primary incident early in the year. The Swiss National Bank (SNB) unanticipatedly dropped the peg of 1.20 francs per euro on January 15. The Swiss franc rallied a whopping 30% against the euro in the initial response to the report and 25% against the US dollar. The step sparked big market upheavals and also put some foreign exchange brokers out of service.

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