Although Swiss economic data printed positively on Wednesday and British data didn’t, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate has advanced by around 0.18%. This is likely to be as a result of better-than-forecast US data inspiring a risk-on environment. Additionally, the ongoing Swiss gold referendum is calling in to question the safe-haven credentials of the Franc.
The Pound Sterling to Swiss Franc exchange rate is currently trending in the region of 1.5385.
Wednesday’s British data printed relatively poorly, which saw the Pound decline against many of its major peers. The Shop Price Index declined from -1.8% to -1.9% despite the median market forecast being for a rise to -1.7%. The Services PMI was forecast to dip from 58.7 to 58.5, but the actual result was a reading of 56.2. The Composite PMI declined beyond the market consensus of a drop from 57.4 to 57, with the actual data revealing a drop to 55.8.
Chief Economist at Markit Chris Williamson commented on the Services PMI, stating; ‘After GDP growth slowed to 0.7% in the third quarter, a 0.5% expansion is currently being signalled by the surveys for the fourth quarter. However, with inflows of work rising across all three sectors at the slowest rate for 16 months, there is a risk that economic growth could weaken further.’
The Pound Sterling to Swiss Franc exchange rate has dropped to a low today of 1.5304.
In comparison with the UK report, Swiss data printed comparatively positively on Wednesday. The yearly Consumer Price Index was forecast to equal the previous figure of -0.1%, but the actual data increased to 0.0%. The yearly EU Harmonised CPI eclipsed the median market forecast of an unchanged figure, with the actual result advancing from 0.0% to 0.1%.
Pound to Swiss Franc Forecast to Strengthen
With anxieties surrounding the potentially detrimental impact of a ‘yes’ vote in the Swiss gold referendum the GBP/CHF exchange rate is likely to advance. Read our article on the Swiss Gold Referendum for more details about the event.
The Pound Sterling to Swiss Franc exchange rate has advanced to a high today of 1.5408.
UPDATE
GBP/CHF Exchange Rate Trending Higher on Swiss Gold Anxieties
The Pound Sterling to Swiss Franc exchange rate is currently trending in the region of 1.5402.
With mounting anxieties regarding the Swiss gold referendum, the GBP/CHF exchange rate has advanced by around 0.29%. The potential damage a ‘yes’ vote could cause has overshadowed the Franc’s safe-haven status. With cautious trading driving the currency market, investors are trading with the US Dollar given the potential downfall of the Swiss Franc and the issues surrounding the Japanese Yen.
GBP/CHF Exchange Rate Edges Lower ahead of BoE Rate Decision
The Pound Sterling to Swiss Franc exchange rate is currently trending in the region of 1.5383.
As traders prepare for the Bank of England’s benchmark rate decision, the Pound has generally softened against many of its most traded currency competitors. A decline in the Halifax House Price, from 0.4% to -0.4%, has compounded the Sterling downtrend.
Thursday’s Swiss data has also been disappointing. Consumer Confidence was forecast to decline from -1 to -5, but the actual result dropped to -11.
Swiss Franc (CHF) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Pound Sterling,
, Swiss Franc,1.5353,
Euro,, Swiss Franc,1.2055,
US Dollar,, Swiss Franc, 0.9623,
Australian Dollar,, Swiss Franc, 0.8288,
New Zealand Dollar,, Swiss Franc,0.7445,
Canadian Dollar,, Swiss Franc,0.8442,
[/table]
