Cross pair (no US dollar)
EUR/CHF through the Lens: a quiet cross with one loud lesson
EUR/CHF is the price of one euro in Swiss francs. It is a cross between two tightly linked neighbours and is usually among the quietest pairs, strongly influenced by the Swiss National Bank. Its history includes one of the sharpest moves in modern foreign exchange, which is why SMC traders treat its calm with respect and size positions conservatively.
Pair facts
| Base currency | EUR (euro) |
|---|---|
| Quote currency | CHF (Swiss franc) |
| Type | Cross pair (no US dollar) |
| One pip | 0.0001 |
| Usual quote | 5 decimals (the last digit is a tenth of a pip) |
| Pip value, standard lot (100,000 EUR) | 10 CHF |
| Pip value, mini lot (10,000 EUR) | 1 CHF |
| Pip value, micro lot (1,000 EUR) | 0.1 CHF |
Pip values are exact in the quote currency (CHF). In another account currency they change with the exchange rate. No prices, no levels, no forecasts on this page: it is a description of the pair, not a view on it.
What EUR/CHF is
EUR/CHF pairs the euro, managed by the European Central Bank, with the Swiss franc, managed by the Swiss National Bank. Switzerland is surrounded by euro area countries and does most of its trade with them, so the exchange rate between the two currencies matters a great deal to the Swiss economy.
For that reason the Swiss National Bank watches this rate more closely than any other and has repeatedly acted to influence it. The franc is also a currency investors have often bought in anxious times, which tends to push EUR/CHF lower when Europe is under stress. The pair is a cross, priced from EUR/USD and USD/CHF.
When EUR/CHF moves
Both currencies keep European hours. Frankfurt and Zurich open together, data from both arrives in the European morning, and the pair does most of its moving between the European open and the European close. Outside those hours it is usually very still.
On ForexLens the London kill zone, 02:00 to 05:00 New York time, covers the European open and is the window to watch. The New York window of 07:00 to 10:00 overlaps the European afternoon. The Asia window of 20:00 to 00:00 normally shows a narrow range.
How EUR/CHF tends to behave
On most days EUR/CHF moves very few pips, often less than EUR/GBP, with long sideways periods. Its spread is noticeable relative to those small moves.
The exception is the reason this pair is famous. The Swiss National Bank held a minimum exchange rate for the euro against the franc from 6 September 2011, promising to defend it. On 15 January 2015 it discontinued the policy without warning. The franc soared within minutes, very little traded on the way, and stop orders were filled far beyond their levels. Some traders ended the day owing more than their accounts held. A market that has been quiet for years can still gap.
How smart money concepts are applied to EUR/CHF
In normal conditions the SMC reading here is about ranges. Traders mark the dealing range, the equal highs and equal lows that slow markets produce, and the liquidity said to rest beyond them, then watch European hours for a sweep or a genuine break of structure. Real displacement is rare on this pair, so when it appears it stands out.
The deeper lesson is about risk, not charts. No concept on this site would have warned anyone about January 2015. What limits the damage from an event like that is position size, decided before the trade, which is the subject of risk and position sizing and of the Risk Desk game.
EUR/CHF questions
What is the pip value of EUR/CHF?
A pip on EUR/CHF is the fourth decimal place, and the quote currency is the Swiss franc. One pip is worth 10 francs on a standard lot of 100,000 euros, 1 franc on a mini lot and 10 centimes on a micro lot. Accounts in other currencies convert that amount at the current rate.
What was the EUR/CHF floor?
From 6 September 2011 the Swiss National Bank set a minimum exchange rate for the euro against the franc and said it would buy foreign currency in unlimited quantities to defend it. On 15 January 2015 it discontinued the minimum rate. The franc rose violently within minutes, in one of the sharpest moves in modern foreign exchange.
Why did stop losses fail on the franc in 2015?
A stop loss becomes an order to trade at the next available price once its level is reached. When the minimum rate was dropped, buyers of euros against francs disappeared and the price jumped a long way with very little trading in between. Stops were filled at the first prices available, far from where they had been set.
Is EUR/CHF a good pair for beginners?
It is calm most of the time, which can look appealing, but small moves and a relatively wide spread make it costly, and its history shows that calm pairs can gap. It is a useful pair to study for what it teaches about central banks and risk. Most retail traders lose money on any pair.
Other pairs
Practise on simulated charts
ForexLens games use simulated prices on several pairs. Start with structure, then liquidity and sessions.