The symbol stands for Euro/Swiss Franc. It tells the reader about the number of Swiss Franc that one needs to have in order to buy one Euro. The Euro in this case is the base currency, while the Swiss Franc is the counter currency.
Facts and Information
To anyone new to the world of forex, the EUR/CHF currency pair might seem to be confusing. This relationship is often regarded as one of the most important currency relationships in the forex market. The reason lies in the fact that the EUR and CHF share a relationship which is the strongest in the market.
Switzerland occupies a position amidst the Eurozone countries. The closeness between Switzerland and the EU has led to trading ties that are so strong that the steps taken by EU can easily affect the businesses in Switzerland. To-date, more than 100 pacts have been signed between the Eurozone and Switzerland, which have further reinforced the relation shared between EUR and CHF. Since the economies are related, the currencies are inevitably linked to one another.
While EUR stands out as the world’s second largest currency, Swiss Franc serves to be the safe havens for traders in times of uncertainty in the market to prevent major losses. It has also been observed that the CHF is a more stable currency than the euro.
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