Jim Poniat
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Jim Poniat in The Poniat Group,

Trading EURO along with CHF


The Swissy holds a place among the major currency pairs due to Switzerland unique status as a global investment haven. Estimates are that nearly one-third of the world's private assets are held in Switzerland. The Swiss Franc has also acted historically as a so-called "safe-haven" currency alternative to the US dollar in times of geo-political uncertainty, but this dimension has largely faded since the end of the Cold War. Today, USD/CHF trades mostly based on overall US dollar sentiment, as opposed to Swiss based economic fundamentals. The Swiss National Bank is primarily still concerned with the CHF relative to the Euro, since the vast majority of Swiss trade is with the European Union, and Swiss fundamental developments are primarily reflected in the EUR/CHF cross rate. Correlation CHF to EUR remain visible. Take a look on the chart bellow. Example: we can trade EURUSD long and USDCHF short or EURUSD short and USD CHF long. As we can see there is very strong correlation between those two currencies(EUR and CHF).

USDCHF candles are Green and Orange, EURUSD White and Red.