The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was able to push slightly higher during the European session as Switzerland’s Consumer Price Inflation report showed a smaller-than-expected increase.
On the month, the nation’s Consumer Price Index climbed by just 0.1% on a seasonally adjusted basis in September. This followed stagnation in August.
Economists had expected a 0.2% rise.
Annually, Swiss CPI was down -0.1% – defying expectations for a reading of 0.0% and sliding from the previous figure of 0.1%.
In EU harmonised terms, the Swiss Consumer Price Index climbed by 0.4% on the month.
The Pound Sterling to Swiss Franc (GBP/CHF) hit a high of 1.5469
However, Swiss Retail Sales surprised to the upside by surging 1.9% on the year – smashing estimates for a sales gain of 1%.
The previous month’s figure was slashed to a decline of -0.3%.
The Swiss Statistics Agency said this of the monthly figures; ‘Excluding fuel, the retail sector showed a seasonally adjusted increase in real turnover of 2.2% (in nominal terms +2.4%) compared with July 2014. Retail sales of food, drinks and tobacco registered an increase of 0.7% (in nominal terms +1.2%). The non-food sector showed positive growth of 3.0% (in nominal terms +2.4%).’
The Franc put on a mixed performance after the data was published, initially sliding against the Euro and holding steady against several of its other main currency counterparts.
The gains in the CHF/EUR exchange rate were aided by Germany’s poor Industrial Production figures. Industrial production in the Eurozone’s largest economy was shown to have fallen at a much steeper rate than economists had envisaged in August, plummeting by -4.0% on the month and -2.8% on the year.
The GBP/CHF exchange rate was little-changed following the release of the UK’s Industrial and Manufacturing Production figures.
The British reports indicated that the pace of output in the industrial and manufacturing sectors is slowing.
Pound Sterling to Swiss Franc Exchange Rate Forecast
Before the close of the European session the GBP/CHF exchange rate could fluctuate in response to the UK’s NIESR GDP estimate for September.
A strong reading would be Pound beneficial but further signs that the UK economy is losing momentum would drag the British currency lower against its rivals.
The week’s only other influential Swiss report, the nation’s Unemployment Rate, is due to be published tomorrow. The level of joblessness is expected to have held at 3.0% in September.
As UK data is lacking on Wednesday, the Swiss data will be largely responsible for the direction taken by the Pound to Swiss Franc (GBP/CHF) exchange rate.
The Pound Sterling to Swiss Franc exchange rate is currently trending in the region of 1.5440.
UPDATE
The Pound Sterling to Swiss Franc exchange rate is currently trending in the region of 1.5381.
Despite both British and Swiss domestic data printing relatively positively on Wednesday the Pound has weakened against the Swiss Franc. This is likely to be attributed to trader risk aversion after the International Monetary Fund stated that global growth was slower than forecast, and the pace of recovery was uneven and country-specific.
British house prices were seen to have increased in September, but the Shop Price Index declined from -1.6% to -1.8%.
The Swiss Unemployment Rate met with the market consensus and equalled the previous figure of 3.0%.
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,1.5433,
Euro,, Swiss Franc,1.2108,
US Dollar,, Swiss Franc, 0.9610,
Australian Dollar,, Swiss Franc, 0.8445,
New Zealand Dollar,, Swiss Franc,0.7533,
Canadian Dollar,, Swiss Franc,0.8602,
[/table]
