#CurrencyPairPrediction Currency Yield Spread Analysis: USD vs CHF Currency yield spread analysis examines the interest rate differential between two currencies — in this case, the U.S. dollar (USD) and the Swiss franc (CHF). The yield spread is the difference between the respective government bond yields or benchmark interest rates (like U.S. Treasuries vs. Swiss government bonds). USD typically offers a higher yield due to the U.S. having historically higher interest rates compared to Switzerland. CHF is considered a low-yielding, safe-haven currency, often used in times of global market stress. When the USD-CHF yield spread widens (meaning USD yields rise relative to CHF), it usually supports a stronger USD against CHF, as investors seek higher returns. Conversely, when the spread narrows or reverses (CHF yields rise relative to USD or USD yields fall), CHF strengthens against the USD. Traders use this analysis to predict currency movements, guide carry trades, and assess risk sentiment in the market.