CAD/CHF

The CAD/CHF is the currency pair encompassing the Canadian dollar of Canada (symbol $, code CAD), and the Swiss franc of Switzerland (code CHF).

The pair’s exchange rate indicates how many Swiss Francs are needed in order to purchase one Canadian dollar.

For example, when the CAD/CHF is trading at 0.8200, it means 1 Canadian dollar is equivalent to 0.82 Swiss francs.

The Canadian dollar (CAD) is the world’s seventh most traded currency, while the Swiss franc (CHF) is the world’s sixth most traded currency.

Overall the pair is a relatively low liquid pair, with spreads, often staying within 2 to 6 pips on most forex brokers.

How to Trade the CAD/CHF

The CAD is often considered to be a commodity currency given Canada exports a large amount of natural resources, notably oil.

For this reason, the pair is quite reliant on movements in oil prices. Overall, this cross is largely associated with carry trades.

This is further justified by the relationship between a growth-linked, higher yielding currency (CAD) and a safety-geared, low yielding one (CHF).

Global outlook is key for the CAD/CHF, which also regularly moves on any notable changes in this respect.

Additionally, there are a number of key economic releases affecting the pair, namely the CAD.

This includes most Gross Domestic Product (GDP) readings for Canada or other metrics detailing the Canadian economy.

The Bank of Canada also is capable of moving the pair with any monetary policy, with interest rates being a central tenet and catalyst for change in the cross.