CAD/CHF is characterized by stability in these unstable and highly volatile days, which favorably distinguishes this pair from others. The downtrend persists, but the Canadian dollar maintained an enviable stability against the background of increased demand for safe assets. As a result, we can see the least intense trend. Nevertheless, the downward direction is not in doubt yet.
We would like to remind you that the market is currently dominated by a strong geopolitical component. The risk of a conflict between Russia, Ukraine, and the United States prompted investors to buy safe assets. In this situation, the Canadian dollar was supported by rising oil prices. Therefore, there were no significant losses for CAD. At the same time, the Canadian dollar is supported by the aggressive policy of the Bank of Canada. In this regard, the inflation report is becoming key and will be published today. Actual inflation is expected to exceed expectations, forcing a rate hike, according to forecasts.
Inflation in Switzerland is also at its highest level in 14 years, but the easing of tensions between Russia and Ukraine could lead to a sell-off of safe assets and a depreciation of the Swiss currency. At the same time, CAD will face a decline in oil prices, but receive support with new macroeconomic reports.
At the moment, we observe the growth of the Canadian dollar for the third day in a row, and most technical analysis indicators indicate the effectiveness of the deals to BUY. Therefore, today we are buying the Canadian dollar and selling safe assets.
