CAD/CHF

CAD/CHF is the forex quote for the Canadian dollar against the Swiss franc. The pair tells traders how many francs are needed to buy a single Canadian dollar.

The Canadian dollar’s price is largely impacted by natural resources, most notably oil, which has made it a popular way for forex traders to diversify. It’s known as a commodity currency. This means that traders need to be aware of the price of oil, as higher exports can increase the value of CAD and lower the CAD/CHF price.

Conversely, the franc may experience an increase in value during periods of economic decline thanks to its reputation as a ‘safe haven’.

The different levels of risk between the currencies – CAD being higher risk, and CHF being lower risk – and the interest rate differential between the economies have made it a popular ‘carry trade’.