The euro against the Swiss franc currency pair consists of two European currencies highly popular with Forex traders with the euro being the second most traded and the Swiss franc the seventh most traded currency.
The euro is the official currency of most member states of the European Union. The eurozone, as the group of European states using the euro is known, includes approximately 350 million people and has a diversified and complex economy. The euro is popular with Forex traders. It is the second-most traded currency in the world after the U.S. dollar. Any major crisis in one or several member states of the European Union will affect the rate of the euro. When conducting a fundamental analysis of the currency, the economic indicators of Germany, France, Italy and Spain should be considered first as having the most weight in the eurozone economy.
The Swiss franc is the currency of Switzerland. It is legal tender in Switzerland, Liechtenstein and Campione d'Italia. The currency is viewed as a financial refuge because of the stability of the government and financial system of Switzerland. The financial markets in the country are properly regulated and transparent which also leads to the CHF being used as a safe-haven.
Factors affecting the EUR/CHF rate include general economic indicators, such as information on employment, inflation data, retail sales, industrial production, trade balance and the release of GDP data, as well as the central bank decisions regarding the interest rates in the Eurozone and Switzerland. Political events, natural disasters and various government policies can impact the EUR/CHF exchange rate significantly.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
