Next week the Canadian central bank decides whether it will lower it's interest rate. The economic effect there has been extremely severe and it's possible they could be heading towards a depression. The swiss franc on the other hands is regarded as a safe haven due to governmental stability so as people begin moving capital from the dollar as the economy re-opens they will park their money in another safe haven.
Wait for confirmation but that is the thinking behind this trade.
Wait for confirmation but that is the thinking behind this trade.
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