Thread: Why was the EUR/CHF inactive in 2012?

I am curious to know why the movement of the price of this torque was practically dead throughout 2012. I just began to analyze more pairs of currencies and I found this.The price action in 2011 seems normal, and so far in 2013 the torque is moving within a decent range, but 2012 was completely different.I would like to listen to your opinions."Every day, common people do extraordinary things"

As far as I know, the Swiss National Bank set the CHF exchange rate with the EUR in 1.21 during that period.

You are right, Almond!Here is an article that explains the reason behind this.[http://www.dailyforex.com] (http://www.dailyforex.com

Basically, the Swiss National Bank was placing purchase orders in 1,201, because in 2011 everyone and their grandmother were buying Swiss francs with the idea that the end of the world was coming.This massive flow towards the CHF caused the pair to shoot, which represented a threat to the Swiss economy.

The intervention of the Swiss National Bank (BNS

The funniest thing is that many people at that time thought that EUR/CHF was going to shoot because "the BNS could not sustain the intervention forever."Well, reality was another.They kept the floor for years and only in 2015, when they removed it, we saw a real movement.If someone operated this pair in 2012 waiting for volatility, I really didn't understand what was happening.The market was fully manipulated by the Central Bank and there was no way to move freely.It was a book case about what an extreme intervention can do.

I don't know why people are so surprised about what happened in 2012. The history of central banks is full of similar interventions.Does anyone remember when the Bank of Japan did something similar to Yen?The same, but with different currency.What they should wonder is what other pairs are at risk of intervention in the future.Any shelter currency in times of crisis is susceptible to the Central Bank putting the hand to control the chaos.

It seems to me that people underestimate the influence of central banks in the market.Most retail traders believe that Forex is a "free" market, when in reality the big players manipulate prices all the time.The case of the EUR/CHF in 2012 is the perfect proof that if a central bank wants to set the price of a pair, it does and period.No matter how many people try to operate against, they always have more money and more power.

Operating the EUR/CHF in 2012 was basically wasting time.There was no volatility, there was no momentum, there was nothing.It was a completely flat graphic, without real opportunities.If someone tried to make scalping in that period, he sure ended up tear his hair from frustration.The lesson here is clear: you never operate an intervened pair unless you are 100% sure that the intervention will break.And even in that case, it is a huge risk.

Worst of all, there were "gurus" saying that the pair would move sooner or later.Myself fell into the trap and maintain open operations waiting for the market to react.Serious error.The only thing I learned from that experience is that when a central bank sets a price, it is best to look the other way and operate a different couple.Losing months waiting for a break that never arrives is not an intelligent strategy.