The CHF to CAD exchange rate is currently range-bound, trading near recent highs.
Key drivers for this trend include the interest rate differential, as the Swiss National Bank has recently reduced its policy rate to address easing inflation, while the Bank of Canada remains stable at 2.25%. The recent stronger jobs report in Canada has bolstered confidence in the CAD, which could support its value against the CHF, despite the challenges presented by lower oil prices that could hinder CAD strength.
Expected trading over the next few months suggests continued fluctuation within a narrow range, reflecting similar patterns in past weeks. A notable upside risk could arise if oil prices rebound, boosting confidence in the CAD. Conversely, a downside risk may surface from further declines in global commodity demand, potentially leading to increased volatility in the exchange rate.