The Swiss Franc (CHF) was little changed against the Pound (GBP) but advanced to its highest level in 19-months against the Euro (EUR).
On Wednesday the Swiss Franc was hovering close to nine-month lows against the US Dollar but on Thursday the Alpine currency was able to edge higher as investors embarked on a bout of profit taking ahead of major data releases on Thursday and Friday.
The Pound was seeing little in the way of movement due to lack of market moving economic data releases. It remained under some pressure however following the release of disappointing mortgage approval data and a report by the Confederation of British Industry (CBI).
The Euro declined to a 19-month low against the Swiss Franc after it was weighed down by a string of disappointing economic data releases and increasing speculation that the European Central Bank (ECB) will introduce a quantitative easing programme at its next monetary policy meeting.
Further declines could see the Swiss National Bank reconsider its 3-year old pledge to cap the Franc at 1.20 against the Euro.
Wednesday saw the release of the latest Swiss UBS Consumption Indicator. The data showed that Swiss consumer spending and sentiment fell in July after it reached its highest level in six-years in the preceding month.
The Indicator fell from 2.07 to 1.66, a larger decline was prevented however, and as new vehicle, sales bucked the downward trend. New vehicle registrations surged by 26% in July over the previous month marked the first time since 2012 that registrations have increased, UBS said.
‘On the one hand most households anticipate their future economic and financial situation to be worse, on the other, as more consumers assume an improvement to the labour market , along with higher prices, they consider the present time favourable for larger purchases, including cars, ‘ said UBS in its report.
Despite the softer than forecast report the Swiss Franc was able to move higher against a number of peers.
The Franc moved away from an early 2-day low of 1.5195 against the Pound and an 8-day low 113.25 against the Japanese Yen, the franc edged up to 1.5169 and 113.47, respectively.
Swiss Franc to Pound Sterling Exchange Rate Forecast
The CHF/GBP exchange rate is likely to experience muted trading for the rest of the week due to lack of market moving data releases out of either the UK or Switzerland.
Investors will be focusing on data out of the Eurozone, and a further fall in the single currency bloc’s inflation rate will see the Euro fall further against its peers.
Current Swiss Franc (CHF) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Swiss Franc,
,US Dollar,1.0943 ,
Swiss Franc,,British Pound,0.6600 ,
Swiss Franc,,Canadian Dollar,1.1971 ,
Pound Sterling,, Swiss Franc,1.5140 ,
Euro,, Swiss Franc,1.2101 ,
US Dollar,, Swiss Franc,0.9138,
[/table]
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