The Euro vs. the Swiss Franc. This pair is known as a pair trend because there are often long upward or downward trends. It is also often adapted to Swing Trading but because of its lack of volatility it is less popular with scalpers. The EUR/CHF and the USD/SHF exchange rates are highly positively correlated.

  • The EUR/CHF (euro/Swiss franc) can be replicated by a long position in EUR/USD (euro/U.S. dollar) and a long position in USD/CHF (U.S. dollar/Swiss franc).
  • The strong EUR/USD and USD/CHF relationship is stronger than that of other currency pairs due to the close ties between the eurozone and Switzerland.
  • The EUR/USD and USD/CHF pair decouple when there are divergent political or monetary policies.