EURO vs Swiss Franc
EUR CHF is a cross rate with regard to US dollar. Euro and yen have the highest influence on the current dynamics of the rate, the pressure of US dollar is much less. Currency pair EUR CHF traded in the range 1.2400-1.2000 for several years. After cancelation of rigid fixation of franc rate to Euro, it began to move more actively, responded to political events, European and American statistics, and an opportunity emerged for full-fledged technical analysis. However, even now, Euro Swiss franc rate can stay in a narrow flat for a long time, periodically allowing traders to earn on mid-term trends.
Switzerland continuously conducts unexpected currency interventions that result in dramatic franc price jumps; meanwhile, forex EUR CHF pair shows volatility that is practically uncontrolled. That pair is strongly not recommended for beginners. The following factors have fundamental influence on the Euro Swiss franc Forex forecasts: the main economic indicators of Switzerland, Eurozone, the USA, and Japan (discount rate, GDP, inflation, unemployment level, CPI, PMI, etc.); Statements made by officials and financial structures of those countries, European and American financial regulators; Currency interventions of Japanese yen and Swiss franc, as well as ECB's monetary policy; European stock market indexes FTSE 100, Swiss Market Index, DAX, CAC 40.
It is believed that Euro Swiss franc has low liquidity as compared to EUR/USD and USD/CHF and is very rarely used for speculative purposes. The main volume: exchange transactions by ECB and SNB and short-term option contracts.