The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is trending within a narrow range on Wednesday morning.
This can be attributed to waning demand for safe-haven assets as US stocks futures indicate gains following five consecutive days of losses. The Pound, meanwhile, edged higher against many of its major peers after domestic data improved fractionally.
The Pound Sterling to Swiss Franc exchange rate is currently trending in the region of 1.5314.
Yesterday…
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate dipped by around -0.57% Tuesday.
With oil prices continuing to decline and the Greek political situation throwing up many unknowns, risk-aversion strategies are dominating the currency market. The Swiss Franc, thanks to its safe-haven qualities, appreciated fractionally amid dampened risk sentiment. The Pound, meanwhile, softened versus many of its major peers after services data failed to impress.
The Pound Sterling to Swiss Franc exchange rate is currently trending in the region of 1.5353.
Pound Sterling (GBP) Exchange Rate Softens on UK Services
As explained above, the Pound slumped versus most of its currency competitors after services data declined beyond expectations. The UK Services PMI was forecast to drop from 58.6 to 58.5, but the actual result fell to 55.8. The UK Composite PMI also failed to impress having declined beyond the median market forecast of a drop from 57.6 to 57.4 with the actual data dipping to 55.2.
Chris Williamson, Chief Economist at Markit, stated; ‘Weaker rates of expansion were seen in services, manufacturing and construction in December, taking the overall pace of economic growth to the weakest for just over a year-and-a-half. The surveys suggest the economy grew by 0.5% in the fourth quarter, and the loss of momentum towards the year end will no doubt fuel worries that the upturn is too fragile to withstand higher interest rates.’
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate has fallen to a low today of 1.5304.
Swiss Franc (CHF) Exchange Rate Climbs on Safe-Haven Demand
With geopolitical tensions and the declining oil price causing market sentiment to fizzle out, the safe-haven qualities of the Swiss Franc caused the asset to strengthen versus many of its major peers.
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Trend Lower
With a lack of data to curb the trend and with risk-aversion dominating the currency market, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is likely to trend lower on Tuesday.
The Pound Sterling to Swiss Franc exchange rate climbed to a high today of 1.5364.
