If we look at the daily chart, CADCHF:D1, we can see that it is trying to return to the upper part of the broad neutral range. And will the prices of the CADCHF pair continue to rise?
Switzerland released weak inflation data.
The upward move signifies the strengthening of the Canadian dollar against the Swiss franc and there are technical signs that show this, but not many. However, the movement of quotes may depend on economic statistics. The Swiss Consumer Price Index rose +3.4% yoy in June.
The data was released on July 4th. For the first time since 2008, inflation surpassed 3% and was the highest since 1993. And this is much higher than the Swiss National Bank (SNB) rate, which is currently negative at -0.25%. The next SNB meeting will only take place on the 22nd of September. Don’t forget about the agreement with the SNB, where inflation in Switzerland this year will be 2.8% annually and is expected to drop to 1.6% in 2024 alone.
On July 7 the Swiss unemployment rate report for the month of June will be published. The outlook is neutral (2.2%). In turn, the Canadian dollar may be supported by high world oil prices. Last week, good data came out on Canada’s GDP for April (+5% annual).
This week, on July 7th, the trade balance will be released and on July 8th – Canada Employment Change. In theory, economic statistics could influence the Bank of Canada’s decision (current rate +1.5%) on further tightening of monetary policy at its July 13 meeting.