EUR/CHF overview

The EUR/CHF is a popular cross-currency pair with a relatively brief but closely linked history, representing two significant economies. The EUR only came into physical circulation in 2002 but has quickly become the second most popular currency in the world. Twenty of the 27 European Union (EU) member countries use it as their official currency.

On the other side of the pair, the CHF or 'Swissie' is notable for its stability and staying power. Introduced in 1850, it's the only European franc still in circulation and is currently free-floating, having been pegged to the euro between 2011 and 2015. It's a notable safe-haven currency, meaning its popularity usually increases in times of uncertainty or disaster.

What affects the EUR?

The EUR can be a complex currency to follow given its broad use, though news coverage on it is usually plentiful. Here are some of the key price drivers to monitor if trading or investing in the EUR/CHF.

• Announcements from the European Central Bank (ECB): Among other monetary policies, the Eurozone's central bank aims to control inflation through interest rates. This can impact the EUR significantly. · Eurozone economic data: The ECB also reports on economic health across its member states. GDP, employment and other important indicators can all vary significantly between them, having knock-on effects on the EUR.
• Political events: The EUR has been affected by various political crises and events over its storied history, made more complex by its scope and inter-member relations.

What affects the CHF?

The CHF has been among the most stable currencies historically, yet volatility isn't unprecedented. Key factors to guide your EUR/CHF analysis include:

• Announcements from the Swiss National Bank (SNB): Switzerland's central bank is famous for its low interest rates but has still been known to raise them in bids to control inflation.
• Global events: The CHF is a known safe-haven currency, meaning investors turn to it in times of uncertainty both within the Eurozone and globally, affecting its relative value.
• Eurozone relationship: While Switzerland isn't a member state of the EU, it remains closely associated geographically and economically. Developments in the relationship, such as trade agreements or breakdowns, can influence the EUR/CHF exchange rate.

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