Hi,
I’m an absolute beginner in forex trading and was going through a small segment of the School of Pipsology, “A rate hike by the ECB which boosts EUR/CHF could also spill over on USD/CHF”. I understand that it may boost EUR due to the increased return given, but don’t get why it impacts the cross pair. Any help is much appreciated, thanks in advance.
Technically why the ECB interest rate also affects the cross pair this is because the increase in transaction volume of the euro also impact on the volume of other currency trading is also related
WTF does that mean ? I haven’t got the slightest clue what you’re rabbitting on about !
So essentially, would it cause the USD to appreciate relative to CHF, therefore leading to an increase in the pair?
Very simplified, if people are buying EURCHF then EUR is stronger and CHF is weaker. If USD isn’t going anywhere, EUR goes up relative to USD and CHF goes down relative to it.