The CAD/CHF is an interesting forex pair, in the sense that the CHF is -quite unexpectedly – a major currency. The CAD on the other hand is not, thus the pair itself is not considered a major either. It is not a commodity pair either, despite the fact that the CAD is indeed the currency of a commodity-based economy.
The CAD
The Canadian Dollar came to be as a result of decades of back and forth regarding a proper national currency for the country. Belonging to the British Empire, the Canadian Pound was the currency of choice for Canada before 1871, when the CAD was finally introduced. The proximity of the country to the US and its naturally close trading links to it, fully warranted the introduction of the dollar.
The CAD has been floating since 1970 and the Bank of Canada hasn’t intervened in regards to its valuation since 1988.
The CHF
The Swiss Franc is the currency of a small, yet economically well-developed country. Unlike the CAD, the strength of which is largely derived from the commodity exports of the country, the CHF is more of a finance and services-oriented currency. Although Switzerland is smack in the middle of the EU, it has never expressed any intention to join the union. Thus, the future of the CHF seems secured as well. Despite that, the CHF is indeed closely correlated with the EUR.
Some of the strength and stability of the CHF is also derived from the large gold reserves of the country.
Though it only makes up about 1% of the total global forex trade volumes, the CHF is the 7th most popular reserve currency.
CAD/CHF Analysis
The CAD is heavily influenced by the state of the US economy and the USD. The CHF on the other hand, is similarly linked to the EUR. The pair is therefore closely correlated with the EUR/USD pair.