CAD/CHF confined in tight range with focus on BoC, SNB

The CAD/CHF currency pair edged higher on Wednesday, while moving within a narrow range, as market players were cautious ahead of the outcome of the Bank of Canada’s and the Swiss National Bank’s policy meetings.

The Bank of Canada is expected to lower its benchmark interest rate by 50 basis points to 3.25% at its December 11th meeting.

This would follow the 50 bps rate cut the BoC delivered in October amid a sharp slowdown in Canadian CPI inflation. Headline inflation slowed to 1.6% in September, coming in below the central bank’s 2% target for the first time in three years.

Meanwhile, the Swiss National Bank is expected to cut its key policy rate by 25 basis points to 0.75% at its December meeting, which would be the fourth consecutive reduction in borrowing costs.

In September, SNB policy makers noted that further rate cuts could become necessary in the upcoming quarters to ensure price stability in the medium term.

Inflationary pressure in Switzerland has eased significantly, with annual consumer price inflation standing at 0.7% in November.

The CAD/CHF currency pair was last edging up 0.21% to trade at 0.6235.