EURCHF
The EURCHF currency pair consists of two monetary units, namely the Swiss franc and the euro,
which is the main currency of the European Union countries.
If you look at the configuration of the currency pair, you can conclude that on the chart we see how many Swiss francs are worth one euro.
Until recently, EURCHF was considered one of the calmest assets, since during the day it crossed only 20-50 points per day, and sometimes did not exceed the mark of up to ten points.
Therefore, this instrument was not particularly popular among speculators, since, in fact, very low volatility and small price movements during the day simply did not allow traders to make money.
As I mentioned, the EURCHF currency pair consists of two independent currencies: the euro and the Swiss franc. To understand the factors driving the price, let's look at some of the fundamental news that significantly influence future price movements.
Euro The euro is the second-largest global currency in terms of turnover after the dollar. As you probably know, the euro is the currency of the European Union, of which there are quite a few. However, there are a number of fundamental factors that significantly influence the euro's movement. The most important indicator that regularly moves the euro is interest rate data from the European Central Bank.
Interest rate decisions directly impact future growth or inflation. Therefore, it's one of the strongest indicators driving the euro. Also, don't miss the European Central Bank's press conference, which takes place once a month and lasts an average of 45 minutes. At this conference, the head of the European Bank answers various questions from journalists, and the resulting answers are based on arguments and data that influence the outcome interest rate, there is a strong movement of the euro.
This conference is the only platform through which the head of the ECB sends a message to investors about the euro's future development. The euro's movement is also heavily influenced by the Consumer Price Index, which measures consumer price changes for various goods and services in the eurozone.
Thus, traders use this formal indicator to track inflation in the eurozone. It's important to remember the sectoral data from EU countries. The monthly industrial production report, for example, reveals the state of industry, which is highly developed in Europe and has a significant impact on a number of EU member states' economies, leading to a response in EUR prices.
I've listed only a few key fundamental factors, but you should understand that the euro is affected by all eurozone countries, so you should monitor both the overall eurozone indicators and individual member states. It's also important to remember that the euro is heavily influenced by the US dollar, so it's important to monitor important indicators for the US dollar as well.
franc (CHF ) is the national currency of Switzerland. Over the past year, the Swiss franc has hardly been considered a stable currency, as the recent monetary intervention, which took everyone by surprise, wiped out the capital of hundreds of investors.
Switzerland is a very closed country when it comes to financial information, so many wealthy individuals hide their wealth there. Among the fundamental factors that influence price movements is the unemployment rate in Switzerland, which indicates the strength of the country's economy: as this rate rises, the CHF weakens, and as it falls, it strengthens.
The speeches of the Governor of the Swiss National Bank (SNB) also have a significant impact on the CHF. In their speeches, the SNB Governor often hints at a possible change in interest rates, as well as the development of monetary policy.
A particularly important data point affecting the Swiss franc exchange rate is the KOF Index, which combines 12 different indicators. This indicator shows traders possible trends in GDP growth. It's also worth noting that the CHF is influenced by the dollar, as the EURCHF is a cross rate to the dollar.
Although the EURCHF currency pair is influenced by many different factors, it is quite predictable based on basic fundamental analysis.
Keep in mind that brokers often set large spreads on cross rates, so I recommend being more careful when choosing a broker for trading this instrument.
