Posted November 05, 2010
Even though we tend to focus mainly on the world’s biggest currencies for the head to head reports in this part of the website, we don’t always look at all the possibilities. Sometimes certain currency pairings can escape our attention for a while, and with this in mind let’s take a look and see what happened between the Swiss franc and the Canadian dollar as August gave way to September.
The opening rate for the Swiss franc was 1.0428 but after just three days – as we went into the first weekend of the month – that had reduced to 1.0397. It was only a small drop but it was enough to make us wonder whether the Canadian dollar would be the eventual winner on the currency converter.
The following week certainly made us even more convinced this could be the case, as the franc dropped like a stone to close out Monday night on 1.0191. Would it be unthinkable for the Swiss currency to actually drop below the 1.00 mark? Could it happen or would this be the lowest the exchange rate would go for the whole of the month? There was a long way to go yet but for the moment at least the power seemed to be with the Canadian dollar.
The Swiss franc was not readily swayed though and just twenty four hours after that shock it was back up to 1.0296. It wasn’t quite done yet however and the next day produced another jump up to 1.0368.
Sometimes though a currency can do too much too soon in a single week, and this would turn out to be the case for the Swiss franc. By the end of that same week the currency would be down as low as 1.0075, and once again we were left thinking about the prospect of parity.
The following week the Swiss franc worked hard to get back into contention through the first two or three days. Eventually it worked its way back up to 1.0242, which was a good point to be at. But by the time the week ended it had slipped back again to 1.0151.
The good news was that the following week proved to be much stronger for the Swiss franc. It put in a solid performance and by the time the five days of trading were over it had climbed all the way back up to 1.0484. The Canadian dollar really didn’t have much of a say in it that week, luckily for the franc.
In fact that would turn out to be the major turning point of the whole month, and the Swiss franc had left its move until the very best moment. When all was said and done the final rate for the month was 1.0591, and it was a great moment as well. The Swiss franc may have given us some concern at a few choice moments during September, but it eventually came out all right.