CHF/CAD Exchange rate
Editors’ Picks
NZD/USD holds steady above multi-week low, looks to RBNZ for fresh impetus
NZD/USD consolidates below mid-0.6100s as traders opt to wait on the sidelines ahead of the Reserve Bank of New Zealand rate decision. Heading into the key central bank event risk, expectations for a jumbo RBNZ rate cut fail to assist the pair in capitalizing on the overnight bounce from the 0.6100 mark, or a four-week low.
AUD/USD seems vulnerable near three-week low; FOMC minutes in focus
AUD/USD struggles near a three-week low touched on Tuesday amid the lack of confidence in China's stimulus plans intended to revive the economy. Furthermore, reduced bets for another oversized rate cut by the Fed keep the USD supported near a multi-week top and support prospects for deeper losses.
Gold price slips on Middle East truce calls, clings above $2,600
Gold prices slumped sharply on Tuesday following a strong US jobs report and newswires revealing that Hezbollah supported calls for a truce in the conflict between them and Israel. Hence, hints of a possible de-escalation of the Middle East conflict opened the door for traders to book profits.
RBNZ seen cutting key interest rate by 50 bps in October amid deepening economic downturn
The Reserve Bank of New Zealand is expected to cut interest rates by 50 bps to 4.75% on Wednesday. New Zealand’s deepening economic downturn and inflation optimism flag outsized RBNZ rate cut bets.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
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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.