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 already mentioned, the EURCHF currency pair consists of two independent currencies, namely the euro and the Swiss franc. In order to understand what factors move the price, let's look at some of the fundamental news that really greatly influence the further course of the price.
Euro is the second world currency in terms of money turnover after the dollar. As you probably know, the euro is the currency of the European Union countries, of which there are not so few. However, there are a number of fundamental factors that greatly influence the movement of the euro. The most important indicator that regularly moves the euro is the data on interest rates that the European Central Bank gives us.
The decision on interest rates directly affects future growth or inflation. Therefore, this is one of the strongest indicators that moves the euro. Also, do not miss the press conference of the Central European Bank, which occurs once a month and lasts on average 45 minutes. At this conference, the head answers various questions from journalists, and as a result of the answers, which are based on the argumentation of data that influence interest rate, there is a strong movement in the euro.
This conference is the only platform through which the head of the ECB sends a unique message to investors about the further development of the euro. Also, the movement of the euro is greatly influenced by such an indicator as the Consumer Price Index, which in turn shows changes in prices for various goods and services of eurozone countries on the part of consumers.
Thus, through such a formal indicator, traders monitor the level of inflation in the eurozone. Do not forget about the sectoral indications of the European Union countries. Thus, the monthly report on industrial production shows us the state of industry, which is very developed in Europe and greatly influences a number of economies of EU member countries, which leads to a response in quotes with EUR.
I have listed only a few of the main fundamental factors, but you should understand that the euro is influenced by all countries in the eurozone, so you need to track both the overall performance of the eurozone and individual member countries. Do not forget that the EUR is strongly influenced by the US dollar, so it is necessary to track important indicators for it as well.
CHF is the national currency of Switzerland.
Over the past year, the Swiss franc can hardly be called a stable currency, since the latest monetary intervention, which was unexpected for everyone, destroyed the capital of more than one hundred investors. Switzerland is a very closed country in terms of providing financial information, so many rich people hide their money there.
Among the fundamental factors that influence price movements, one can highlight the unemployment level in Switzerland, which shows how strong the country’s economy is; as this level increases, the CHF weakens, and when it decreases, on the contrary, it strengthens. The speeches of the Chairman of the Swiss National Bank also have a very strong influence on the CHF.
In his speech, the chairman often hints at a possible change in interest rates, as well as about the development of monetary policy. Particularly important data that influences the change in the exchange rate of the Swiss franc is the KOF Index, which combines 12 different ones.
This indicator shows traders possible trends in GDP growth. One should not ignore the fact that the movement of CHF is influenced by the dollar, since EURCHF is a cross rate to the dollar. Despite the fact that the EURCHF currency pair is influenced by many different factors, based on the basic indicators of fundamental analysis, it is quite predictable.
Remember, brokers often place a large spread on cross rates, so I recommend being more responsible when choosing a broker for trading this instrument.