07 May 2021 14:28
CHF/PLN is not very popular currency pair on the Forex market. It the cross currency pair as it does not include the U.S. dollar. However, the U.S. currency has a significant influence on it. This can be seen if you combine two price charts: the USD/CHF and USD/PLN. Thus, you can get an approximate CHF/PLN chart.
The U.S. dollar has a significant influence on both currencies. So, a CHF/PLN trader should take into account the major U.S. economic indicators in order to make a correct prediction of a future trend of this financial asset. The indicators which are important to keep track of: the Federal Reserve discount rate, GDP, unemployment rate, new jobs, etc. It is also worth noting that the currencies comprising the pair can respond at a different rate on changes in the U.S. economy. Therefore, the CHF/PLN may be considered as a specific indicator reflecting changes of these currencies.
The Swiss economy remains strong for several centuries. For this reason, its national currency enjoys a great confidence all over the world as one of the most reliable and stable currencies. The Swiss franc is also a safe haven for capital investment during the crisis. Therefore, in times of crisis, when capital is urgently forwarded to Switzerland, the Swiss franc rises sharply against other currencies. This feature of Swiss economy should be taken into account when you trade this financial asset.
Poland plans to introduce the euro in the near future. At the same time, many of the domestic problems (the budget deficit, high public debt, etc.), as well as the global economic crisis prevented Poland from adopting the single European currency in the planned terms. The European Central Bank proposed to the country strict conditions to euro adoption. However, Poland will introduce the euro until 2014, having met all requirements.
Poland is a developed industrial country with high living standards. The main economic sectors are engineering, metallurgy, chemical and coal industry. Poland has robust automotive industry and shipbuilding yards on the Baltic Sea. The country is rich in mineral resources: coal, copper, lead, natural gas, etc. Due to the large number of hydrocarbons, Poland's economy is able to cover most of its electricity needs. International sovereign credit rating, the state of the leading sectors of the economy of Poland and the European Union are considered to be the factors that have a significant influence on the rate of the national currency.
This trading instrument is relatively illiquid compared with major currency pairs such as the EUR/USD, USD/CHF, GBP/USD, and USD/JPY. Therefore, when you forecast its further movement, you should primarily focus on the pairs with the Swiss franc and Polish zloty quoted against the U.S. dollar.
If you trade cross rates, it is necessary to remember that brokers usually set a higher spread for crosses than for more popular currency pairs, so you should carefully read the conditions the broker offers for trading this type of currency pairs.