Seasonality trends are favoring the CHF, as CAD/CHF shows a downward trajectory. Commitment of Traders (COT) data indicates a decline in CAD/CHF, with non-commercial positioning suggesting potential strength for the CAD. However, overall sentiment from endogenous factors leans more in favor of the CAD than the CHF.
That said, CHF shows improvement in endogenous factors, driven by rising manufacturing activity, stronger services PMI figures, increased business confidence, and a growing money supply. In contrast, CAD's money supply growth is negatively impacting its endogenous outlook. On the exogenous front, CAD’s GDP is declining, further weighing on its prospects.
Overall, leading economic indicators, including endogenous and exogenous factors, along with the growth in CHF's real GDP (aligned with global GDP trends), collectively point to bearish momentum for CAD/CHF.
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