EUR/CHF Live Chart

The EUR/CHF pair is one that a lot of traders will overlook under normal circumstances, but do so at their own detriment. After all, the Euro and the Swiss franc are both major currencies, and as a result there is a lot of liquidity in this pair. Think of it this way: anytime money in Europe wants to find a safe banking system, Switzerland is right next door. Because of this, this pair tends to fall when there’s a lot of financial concern out there. Switzerland represents safety, so of course the Swiss franc will gain in value during this times. On the other hand, money flows out of Switzerland looking for higher returns in Europe when economic times are good. Because of this, the pair tends to be a bit of a barometer for economic risk appetite. If the world’s markets are doing fairly well, this pair tends to as well.

EUR/CHF Live Chart:



 

What is the Average Spread on the EUR/CHF?

On the spread on this particular pair tends to be somewhere in the frame of 3 to 4 pips, and as that is the case, it is a very reasonable market to be involved in. Trading costs are not going to be an issue, and there is plenty of liquidity as there is so much economic activity between both Europe and Switzerland, and with that being the case it is a good pair for short-term traders as well. However, keep in mind that the pair tends to move a little slower than some of the other major pairs, which in a sense makes it perfect for new traders as it allows for them to hang onto the trade longer without facing serious psychological pressures.

Which Economic Events Impact the EUR/CHF?

There are a lot of different announcements they can influence this market. Switzerland has a plethora of economic announcements they can move the Swiss franc side of this equation, such as employment numbers. There are also CPI, PPI, and export numbers, which can move this pair. Export numbers are particularly important out of Switzerland in this market, as Switzerland sends 85% of its exports into the European Union. On the other side of the border, you have German economic numbers which have a massive influence on the Euro in general, and as a result can move this market. Obviously, interest-rate announcements out of both central banks can influence the market, just as any other pair would be influenced.

The best time to trade this market is going to be during the European session obviously, as not only will speculators be involved in the market, but so will corporations. Because of this, a majority of the move that tends to be lopsided, and of course keep in mind that the economic announcements for both economies come out during the same timeframe, so that tends to lend it to being most vibrant during European trading obviously. However, the North Americans do trading fair amount in this particular pair at times. This pair tends to go to sleep during Asia, so truthfully by the time you get to afternoon in New York, this market tends to drift lower as far as volatility is concerned.

You should not be concerned about trading this pair at all, there is plenty of liquidity. It is one that tends to move a little slower than the other ones, but that allows for the trader to take their time when making decisions as to either getting in or getting out of the marketplace. This is an excellent way to play European economic health, as if there are problems in Europe, money will flow into Switzerland and push this pair lower. Recently though, it should be noted that the Swiss National Bank has been highly involved in the Forex markets, so that of course has had a bit of an influence in this pair. Nonetheless, this is a “minor” pair that is very easy to trade and can be very profitable for those who are willing to hang on and let the move play itself out.

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