The CAD to CHF exchange rate is currently range-bound.
Key drivers include:
- The Bank of Canada maintained its policy rate at 2.25%, while the Swiss National Bank reduced rates to 0.5%. This creates a favorable interest rate differential for the CAD.
- The CAD remains sensitive to oil prices, which have fallen recently, impacting the Canadian economy’s export revenues.
- Stronger-than-expected job growth in Canada supports confidence in the CAD, contrasting with Switzerland’s low inflation and recent trade challenges due to tariffs.
Over the next 1–3 months, expect the CAD to CHF rate to trade within a stable range.
An upside risk could arise if global oil prices recover, boosting the CAD. Conversely, a potential downside risk is if tariff impacts on Swiss exports continue, further pressuring the CHF and the broader economy.