The CAD/CHF pair consists of the Canadian dollar and the Swiss Franc. The pair is often used in carry trades due to it being comprised of the high-yielding CAD and the safe-haven asset CHF.
The Canadian dollar is the official currency of Canada. The country depends on its exports of crude oil, gold, sawn wood and raw aluminium. Any major price fluctuations of those commodities may result in the currency's rise or decline. The Canadian economy depends on the U.S. because it is the largest export market and the country most imports come from. Any severe blow for the U.S. economy will therefore affect the Canadian dollar.
The Swiss franc is the currency of Switzerland. It is legal tender in Switzerland, Liechtenstein and Campione d'Italia. The currency is viewed as a financial refuge because of the stability of the government and financial system of Switzerland. The financial markets in the country are properly regulated and transparent which also leads to the CHF being used as a safe-haven.
Factors affecting the CAD/CHF rate include general economic indicators, such as information on employment, inflation data, retail sales, industrial production, trade balance and the release of GDP data, as well as the central bank decisions regarding the interest rates in both countries. Political events, natural disasters and various government policies can impact the CAD/CHF exchange rate significantly.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
