The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate strengthened by around 0.38% on Tuesday.
After Swiss data printed relatively positively, the Franc strengthened versus many of its major peers. With trader focus dominated by proceedings in the Eurozone, the Franc suffered little by way of volatility thus far.
British data also printed relatively positively on Tuesday which saw the Pound strengthen versus many of its most traded rivals. Additional support can be attributed to expectations that the British growth estimate data, due for publication later on Tuesday afternoon, will print positively.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.4123.
Pound Sterling (GBP) Exchange Rate Gains on Positive Data
British data was generally positive on Tuesday, with most results bettering estimates. Yearly Industrial Production equalled the median market forecast of a drop from 1.1% to 0.5% in December. Additionally, Decembers Manufacturing Production bettered the market consensus of a drop from 3.0% top 2.0%, with the actual result only falling to 2.4%. Although this data shows that factory output declined, most experts attribute the fall to low oil production which is considered a temporary issue.
Rob Wood, chief UK economist at Berenberg bank, said: ‘December’s overall industrial production fall was driven by falls in volatile oil and utilities output. Extended maintenance in some North Sea fields, like Huntington, account for the 1.4% [month-on-month] fall in extraction output in December – as an aside, that fall in oil output in December tallies with last week’s trade figures showing the oil trade deficit worsening in December.’
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate dropped to a low today of 1.4037.
Swiss Franc (CHF) Exchange Rate Ticks Higher on Seasonally Adjusted Unemployment
Although the Swiss Unemployment Rate gained from 3.4% to 3.5%, the seasonally adjusted unemployment rate managed to decline from 3.2% to 3.1%. In addition, the Consumer Price Index was slightly better than expected, although still fell from the previous percentage.
Swissquote analyst Ipek Ozkardeskaya connected the price decline with the Euro cap removal, stating; ‘The price deceleration is now ready to stay in Swiss headlines for months ahead.’
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Advance
With British growth estimate data due for publication later on Tuesday afternoon, and with many experts speculating a positive print, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate has the potential to advance. It is possible, however, that with focus dominated by Greece and the Eurozone, the data will have a minimal impact.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate reached a high today of 1.4134.
