EUR/USD
The most currency market updates related recent report of the Bank for International Settlements, BIS of 2007 witnesses that the EUR/USD is the most common traded pair with 27% daily share of the trade. This world currency market pair is a great instrument for experienced market traders and for newcomers. It’s a european currency market extremely active pair with small volatility that is very attractive for most traders. The pair’s movements are very gradual and the pair is very active during the day that enables one-day and short-term traders generate high incomes
EUR/USD is generally opposite correlated to USD/CFH and directly to GBP/USD. It means that is EUR/USD is rising, than the USD/CHF will probably go down. On practice, this opposite correlation is a tough dependence that may be seen in daily trading charts. Just open the two pair charts in your terminal and compare them. It’s possible that you will have a nice idea about the future movements of any pair.
If you are entering real time currency market with this currency pair, you should be aware of economic picture of Euro zone and USA, and trace back the currencies’ decision-makers announcements about the economics of their countries and their currencies. The USA Central Bank is the Federal Treasury. And the Euro Currency is managed by European Central Bank.
USD/CHF
As the BIS 2007 report goes, the USD/CHF pair constitutes just 5% of the daily total volume. It’s said to be the least traded pair of the majors. It’s spread is generally higher than the one of the EUR/USD, but it’s not the reason not to trade this pair. It’s quite popular and is oppositely correlated to EUR/USD. Sometimes USD/CHF “leads” the EUR/USD and sometimes otherwise. The Swiss frank is positively differentiated on the currency market and total geopolitical chaos as it has the reputation of a safe way of currency forex market trading.
USD/CHF is much more influenced by the USA happenings than the Swiss ones. Swiss National Bank is the Swiss Central Bank. Swiss economics is very much dependent on export, as well as Japan and Euro zone.
