CHF/CAD Exchange rate
Editors’ Picks
EUR/USD edges higher to mid-1.1600s; looks to US PCE Price Index for fresh impetus
The EUR/USD pair attracts some dip-buyers during the Asian session on Friday and recovers a part of the previous day's retracement slide from the 1.1680 region, or the highest level since October 17. Spot prices currently trade around mid-1.1600s and remain on track to register gains for the second straight week.
GBP/USD: Constructive view prevails above 1.3300 ahead of US PCE inflation data
The GBP/USD pair trades on a flat note near 1.3330 during the Asian trading hours on Friday. Traders prefer to wait on the sidelines ahead of the key US inflation report later on Friday. The US delayed Personal Consumption Expenditures Price Index report for September could offer some hints about the US interest rate path.
Gold edges higher amid dovish Fed expectations; traders await US PCE inflation data
Gold struggles to capitalize on the overnight bounce from the $4,175 area, or the vicinity of the weekly trough, and oscillates in a narrow trading range during the Asian session on Friday. Traders now seem reluctant and opt to move to the sidelines ahead of the September Personal Consumption Expenditures Price Index, or the Federal Reserve's preferred inflation gauge.
Pi Network: Bearish streak nears critical support trendline
Pi Network edges lower on Friday for the third consecutive day, approaching a local support trendline. The on-chain data suggests an increase in supply pressure as Centralized Exchanges experience a surge in inflows. Technically, the pullback in PI risks further losses, as the Moving Average Convergence Divergence indicator is flashing a sell signal.
Why the Fed may cut rates in December: Understanding the policy shift
The Fed has gone through a noticeable policy swing in recent months - from initiating a rate cut, to signaling a potential pause, and now shifting once again toward another cut in December. This has created understandable confusion among traders and investors trying to interpret the Fed’s reaction function.
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CHF/CAD
The CHF/CAD pair tells the trader how many Canadian Dollar (the quote currency) are needed to purchase one Franc Swiss (the base currency). These two economies are quite intensely linked because Canada is an important producer of gold while Switzerland is a great importer of that same commodity - a quart part of the overall commodities imported by Switzerland is gold and there is a solid tradition of gold refineries/gold mining companies in the country. Switzerland can be considered as a stable and safe country. The same accounts for its currency, the Swiss Franc (CHF). The currency is often referred to as the “safe-haven” currency, as it is a backup for investors during times of geopolitical tensions or uncertainty: it is expected to increase its value against other currencies in times of volatility.
HISTORIC HIGHS AND LOWS FOR CHF/CAD
- All-time records: Max: 1.4753 on 01/01/2015 - Min: 0.2176 on 01/01/1961
- Last 5 years: Max: 1.4680 on 18/01/2016 - Min: 1.2589 on 11/09/2017
* Data as of February 2020
ASSETS THAT INFLUENCE CHF/CAD THE MOST
- Currencies: USD and EUR.
- Commodities: Gold, Oil and Natural Gas.
- Bonds: CSB (Canada Savings Bonds), CPB (Canada Premium Bond) and SBI T (Swiss Bond Indexes).
- Indices: SMI (the Swiss Market Index, Switzerland's blue-chip stock market index ), ESTX50 (ESTX50 (Euro Stoxx 50, a stock index of Eurozone stocks designed by STOXX, an index provider owned by Deutsche Börse Group) S&P/TSX Global Gold Index (index of global gold securities) and S&P/TSX Capped Energy Index (benchmarks for related derivative products of Canadian economic sectors).
ORGANIZATIONS, PEOPLE AND ECONOMIC DATA THAT INFLUENCE CHF/CAD
The organizations and people that affect the most the moves of the CHF/CAD pair are:
- Central Banks of Switzerland, the Swiss National Bank (SNB) and his Chairman of the governing board, Thomas Jordan. The SNB controls the Switzerland’s monetary policy, through active duties such as managing interest rates, setting the reserve requirement, and acting as a lender of last resort to the banking sector during times of bank insolvency or financial crisis.
- Bank of Canada (BoC, Canada’s Central bank) is a Crown corporation and Canada's central bank. Chartered in 1934 under the Bank of Canada Act, it is responsible for formulating Canada's monetary policy, and for the promotion of a safe and sound financial system within Canada. BoC has the same role as the SNB and issues statements and decides on the interest rates of the country. Its president is Tiff Macklem.
- The Federal Reserve of the United States (Fed) is the central banking system of the United States of America. It was created on December 23, 1913, with the enactment of the Federal Reserve Act, after a series of financial panics led to the desire for central control of the monetary system in order to alleviate financial crises. Fed's president is Jerome Powell.
- European Central Bank (ECB) is the central bank for the euro and administers monetary policy within the Eurozone, which comprises 19 member states of the European Union and is one of the largest monetary areas in the world. The main objective is to maintain price stability for the Euro. The Bank is currently headed by Christine Lagarde.
- World Gold Council (WGC): because of the gold-dominated relationship between Canada and Switzerland, the WGC, a market development organisation for the gold industry whose aim is to stimulate and sustain demand for that commodity, is an important institution whose decisions and reports can affect the CHF/CAD.