These twp pairs are negatively correlated and I always check USD/CHF before opening or closing trades in Euro.
I was first told this by a Professional City Trader and have followed the 2 pairs constantly.
Sun Trader you should read article Doblece posted - here's snippet:
"in getting into the forex market, there is one relationship of which you must be aware before you even start trading. This is the relationship between the euro and the Swiss franc currency pairs - a correlation too strong to be ignored. In the article Using Currency Correlations To Your Advantage, we see that the correlation between these two currency pairs can be upwards of negative 95%. This is known as an inverse relationship, which means that - generally speaking - when the EUR/USD (euro/U.S. dollar) rallies, the USD/CHF (U.S. dollar/Swiss franc) sells off the majority of the time and vice versa. When you're dealing with two separate and distinct financial instruments, a 95% correlation is as close to perfection as you can hope for."
This correlation is far stronger than any other pair.
I was first told this by a Professional City Trader and have followed the 2 pairs constantly.
Sun Trader you should read article Doblece posted - here's snippet:
"in getting into the forex market, there is one relationship of which you must be aware before you even start trading. This is the relationship between the euro and the Swiss franc currency pairs - a correlation too strong to be ignored. In the article Using Currency Correlations To Your Advantage, we see that the correlation between these two currency pairs can be upwards of negative 95%. This is known as an inverse relationship, which means that - generally speaking - when the EUR/USD (euro/U.S. dollar) rallies, the USD/CHF (U.S. dollar/Swiss franc) sells off the majority of the time and vice versa. When you're dealing with two separate and distinct financial instruments, a 95% correlation is as close to perfection as you can hope for."
This correlation is far stronger than any other pair.