Another currency pair which binary options traders love is the EUR/CHF. The “Euro Swiss”, as it is called by most traders, is the 3rd most traded currency pair on the Forex market and is also one of the most stable pairs. However, there are periods of increased volatility. These periods are usually marked by major economical or political issues in Europe and it is fairly easy to predict when the quote of the EUR/CHF will start changing rapidly.
Other factors that have a big influence on the value of the Euro and Swiss Franc are interest rates, inflation statistics, economic performance, official trade reports and speculation. Binary options traders have been using this currency pair for many years, but in recent times, it has lost some of its popularity due to the unstable economical climate in Europe. Countries like Greece, Italy, Ireland and Spain face huge debt problems and this has a major influence on the Euro’s value and therefore on the EUR/CHF quote.
So let’s stay a thing or two about the two currencies that form this Forex pair. The Euro has been the official currency in the European Union since 1995. However, trading with it became possible in 1999, so traders have been using it for little more than a decade. The Euro didn’t do well when it was introduced to the market and it needed several years to establish itself as one of the major trading currencies. Nowadays, the Euro is the official currency in 16 of the 27 nations that are members of the European Union.
The Swiss Franc has been the official currency in Switzerland for over two centuries. The currency labeled “CHF” is also the fifth most traded currency on the Forex market and is responsible for 7% of the trading volume worldwide. The Swiss Franc is one of the few currencies that benefit from geopolitical and global economical challenges.