The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending in the region of 1.4033.
Earlier… The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate strengthened by around 0.24% on Tuesday.
Despite the fact that Swiss trade data printed disappointingly on Tuesday, the Franc appreciated versus most of its major peers. This is likely to be as a result of traders overdoing the decline on Monday amid speculation that the Swiss National Bank (SNB) will introduce an unofficial Euro cap.
The Pound Sterling, conversely, appreciated versus most of its major rivals as a result of better than expected domestic data. However, gains have been tempered by the black cloud of political uncertainty looming overhead as we draw nearer to the general election.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.3966.
Pound Sterling (GBP) Exchange Rate Steadily Climbs on Construction Data
As explained above, the forthcoming general election is acting like an anchor on Sterling gains. Issues from austerity to a potential Brexit are causing investors to exert caution when it comes to investment in the British asset.
However, the Pound has managed to gain against many of its currency competitors thanks to better-than-expected domestic data. The UK Construction PMI eclipsed the median market forecast of a decline from 57.6 to 57.0, with the actual data reaching 59.1.
Tim Moore, Senior Economist at Markit, said; ‘Strong demand for construction materials resulted in upward pressure on costs and lengthening delivery times from suppliers in January. That said, the latest survey highlighted that lower fuel and energy prices helped drive down overall cost inflation to its lowest for just under two years.’
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate has fallen to a low of 1.3874.
Swiss Franc (CHF) Exchange Rate Rebounds on Unjustified Declination
After softening considerably amid speculation that the SNB will be maintaining an unofficial Euro cap, the Franc recovered losses on Tuesday as traders feared the downtrend was overdone. This is especially true given that the SNB have not confirmed these rumours.
‘As those volumes are substantial in historical comparison, it remains to be seen for how long the SNB will be willing to buy foreign currencies,’ Credit Suisse analyst Maxime Botteron wrote in a note.
Disappointing trade balance data had minimal impact on the Franc. The Swiss trade surplus was forecast to narrow from 3.80 billion to 2.10 billion, but the actual result was a drop to 1.52 billion.
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Hold Steady
Given the lack of data to curb the trend, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is likely to hold within a limited range for the remainder of Tuesday.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate climbed to a high today of 1.3980.
