CHF/CAD Outlook:
The CHF/CAD exchange rate is currently slightly positive, but likely to move sideways. It is trading above its recent average, but there isn’t a clear driver pushing it upward.
Key drivers:
- Rate gap: The Swiss National Bank remains cautious with its monetary policy, while the Bank of Canada has cut rates amid economic slowdown, which could support the Canadian dollar.
- Risk/commodities: Rising oil prices have notably strengthened the Canadian dollar, as higher revenues improve Canada’s economy and enhance the CAD's position.
- One macro factor: Canada’s retail sales figures, if reported positively, could further bolster the CAD in the near term.
Range:
Expect the CHF/CAD rate to hold within its recent 3-month range as both currencies exhibit stable trends.
What could change it:
- Upside risk: Strong economic data from Canada could lead to increased investor interest in the CAD.
- Downside risk: Renewed trade tensions or policy changes from the Swiss National Bank could weaken the CHF.
