Switzerland released from the fixed exchange rate the Euro .Notoriamente the Swiss franc from the market has always been considered a safe haven, then in times of global crisis normally seeks capital protection, therefore in the 2011 the BCS to contain the tendency to an excessive appreciation of the Swiss franc exchange rate block . The exchange parity is hardly sustainable markets in turmoil, means selling assets denominated in francs to buy financial assets denominated in other currencies , in such a way, it exerts a downward pressure of Franco.
Currencies are quoted in pairs, for example - EUR / USD or USD / JPY. The first “acronym”, currency in the pair is called “base currency”, while the second is called “counter currency”. The base currency is the one that will be used as “base” precisely for purchases and sales. For example, if you decide to buy EUR / USD, then you acquire Euros and sell U.S. Dollars. You do this if you expect the Euro to a record high against the U.S. dollar. […]