The Ultimate Guide to
What is the EUR/CHF?
The EUR/CHF currency pair is one the crosses of the euro and is the price of the Euro in relation to Swiss franc. According to the Bank of International Settlements (BIS) the EUR/ CHF is highly liquid and had a turnover of $44 billion in 2016, up 0.9% from 2015. In a 52 week period, the Euro traded at a low of 1.0626 and a high of 1.113. Between February and March the EUR/CHF hovered roughly between 1.06 and 1.08, and the current spot price is 1.0733. There is a remarkable correlation between the EUR/USD and USD/ CHF. When the dollar swissy rallies, the EUR/USD dollar sells off. This correlation is often weaker intraday.
What are the Fundamental influences of the EUR/CHF?
The fundamental drivers of the EUR/ CHF are chiefly political and economic. In the EU interest rates are set by the ECB and in the Switzerland the Swiss National Bank determines rates. Political uncertainty in Europe often sees the Swiss franc gaining against the euro. If on the other hand, the ECB increases interest rates the euro will strengthen against Swiss franc. Politics is major influence on EUR/CHF, and since the Brexit vote the Euro has fallen against the Swiss franc, although it has staged a modest recovery. Interest rates and policy developments impact on the EUR/ CHF vis-à-vis the USD/ CHF and the EUR/USD.
3 Factors that could influence the EUR/CHF in 2017
The Eurozone faces many downside risks currently including interest rates developments in G8 countries and sluggish employment particularly in France, while Brexit adds another layer of uncertainty. Persistent high unemployment in France, 9.6% for all and 26% for the young, is not Euro positive and could fuel further weakening. The high unemployment could see a Le Pen win, and the Swiss Franc make rapid gains against the euro. Across the Atlantic, despite the promise of fiscal stimulus from the Trump administration, the dollar could rally from its current weak levels, providing further downside risks for the EUR/CHF. The Swiss Franc continues to maintain its status as a safe haven currency , especially in uncertain times such as Brexit.
How to trade EUR/CHF:
LCG trader offers clients access to over 5000 instruments across seven asset classes. New and novice clients can benefit from no minimum deposit requirements. Clients are required to have sufficient funds to cover margin requirements. Leverage is calculated in terms of tiers and margin group. Tier one offers the highest leverage of 500 on major forex pairs. The margin call level is set a 10%. LCG provides valuable tutorials and in-depth charts.
Trade the EUR/CHF with a FOREX/CFD Broker
Forex and CFD broker London Capital Group offers several trading accounts including a standard account. The trading platform is intuitive and easy to understand including pip spreads and leverage. Traders do not pay commission and the broker earns revenue on spreads.
Here is an example of a standard account for trading the EUR/CHF at London Capital Group:
• Ave spread 2.6
• Min trade size 0.01 Lot
• Pip position 0.0001
• Value of 1 pip/lot CHF 10
• Max Leverage 1:50
Summary
The EUR/CHF is popular to trade because it is a liquid and stable currency but subject to volatility from time to time, such as the sharp fall of the Euro in early 2015 when the Swiss National Bank unpegged the Swiss Franc against the Euro. A FOREX/CFD broker can help you make the most of such opportunities.
