#CurrencyPairPrediction Safe haven demand vs. interest rate differentials in USD/CHF: CHF (Swiss franc) is considered a safe haven currency. In times of global uncertainty (e.g. geopolitical risk, financial crises), investors often buy CHF, causing the USD/CHF pair to fall (CHF strengthens). Interest rate differentials reflect the gap between U.S. and Swiss interest rates. When U.S. rates rise relative to Swiss rates, it typically boosts USD/CHF (USD strengthens), attracting capital to the higher-yielding dollar. These two forces can pull USD/CHF in opposite directions: safe haven flows support CHF, while higher U.S. rates support USD. The net impact on USD/CHF depends on which factor—risk sentiment or yield advantage—is stronger at a given time.