What influences the CAD/CHF exchange rate?
The CAD/CHF exchange rate may be influenced by the CHF’s status as a safe haven currency, as investors have often flocked to it in turbulent times. However, the USD and JPY have been preferred as safe havens in recent years, probably due to Swiss National Bank intervention in pricing against the euro. Nonetheless, the Swiss franc is still seen as a safe choice for traders when economic conditions around the world are turbulent although the turmoil generated by the aftermath of Brexit may have consequences for the CHF.
The interest rate differential between the CAD and CHF may also affect the exchange rate, and the Swiss National Bank continually re-evaluates whether or not the CHF should be pegged to the euro to maintain reasonable trade balances within Europe.
The loonie, or Canadian dollar (CAD), works under a floating exchange rate regime. Therefore, the CAD exchange rate may be determined by supply and demand. Other factors that might influence CAD’s value include commodity prices, interest rates, and inflation rates.1
“Canada and Switzerland enjoy a strong and diverse commercial relationship that covers the full spectrum of trade, investment and innovation.” – Embassy of Canada to Switzerland2
- Switzerland is Canada’s 10th biggest foreign investor. It’s also Canada’s 14th biggest merchandise trading partner.2
- In terms of merchandise exports from Canada to Switzerland, they consist mostly of electrical and electronic equipment and machinery, precious metals and stones, aerospace products, and pharmaceuticals.2
- Imports from Switzerland to Canada primarily consist of organic chemicals, machinery and equipment, clocks, watches, and parts, pharmaceuticals, and scientific and precision instruments.2
- In 2015, Canada was ranked 10th in GDP, while Switzerland ranked 19th.3
- In 2015, Canada was the 11th largest exporter and 10th largest importer in the world.4 Switzerland was the 15th largest exporter and the 17th largest importer.5
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Currency Name: Swiss Franc
Currency Code: CHF
Currency Symbol: Fr
Central Bank: Swiss National Bank
Countries Used In: Switzerland, Campione d'Italia, Liechtenstein
Major Unit: One Franc
Minor Unit: One Rappen
Note Denominations: 10, 20, 50, 100, 200, 1,000 francs
Coin Denominations: 5, 10, 20 rappen. ½, 1, 2, 5 francs
CHF to CAD exchange rate analysis. Check out our daily market analysis to learn the factors influencing the CHF to CAD exchange rate today.