World currencies at : Swiss franc - CHF

Swiss franc - one of the major currencies included in the so-called majors. Foreign exchange transactions with CHF The total volume of transactions is 3% of the total volume of transactions. This, of course, is not 42% U.S. dollars, but still not bad at all.

Traditionally Swiss franc It acts as a safe haven currency for investors in the event of any loss of interest in risk. The Swiss franc is regulated by the Swiss National Bank, or SNB for short. And for this bank is characterized by foreign exchange intervention to maintain the necessary rate of the national currency.

The last major intervention was made to weaken the franc against the European currency, which led to an increase in the exchange rate of the currency pair EUR/.CHF By more than 1000 points. The Swiss National Bank is currently holding the level of 1.20 and announces open interventions in case EUR/CHF rates drop below 1.20. This is actively used by investors and traders around the world: they try to buy the pair when the level reaches 1.20.

According to the Swiss National Bank, a fair euro / franc pair rate is at 1.30-1.40. Therefore, at the moment a large number of traders take long positions on the pair, hoping for "easy" money. Interest in these actions is fueled by the story about the wife of the former chairman of the Swiss National Bank, who managed to earn about 60 thousand euros from the intervention. Swiss francs.

It is also worth recalling a well-known fact of high correlations EUR/USD with the USD/CHF pair. It was close to -1, allowing traders to hedge their positions. During the financial crisis this trend reversed somewhat, but still the similarity in the behavior of the pairs remained noticeable, especially after the pegging of Swiss franc to the euro.