Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate softer on Swiss GDP data

Pound to Swiss Franc exchange rate graph

The Pound weakened against the Swiss Franc on Wednesday after data out of Switzerland showed that the Alpine nation saw its economic growth rate quicken in the first quarter of 2014.

Sterling was trading softer against most of its most traded peers on Wednesday morning as the currency remained under pressure from yesterday’s data which showed that the number of mortgages being approved in the UK fell.

Concerns over the European Election victory for UKIP also put some pressure upon the Pound as some investors said that the anti-EU party could affect investor confidence in the country as it increases the possibility of a British exit from the EU.

According to the Swiss State Secretariat for Economic Affairs, Gross Domestic Product in the first quarter of the year increased by 0.5% from the previous quarter and expanded by 2% compared to the previous year.

The data was largely in line with economist forecasts for a quarterly rise of 0.6% and was better than the 1.85% yearly rise expected.

“On the expenditure side, positive contributions to GDP growth came in particular from the balance of trade in goods and services as well as investments in construction. On the production side the main contributions to GDP growth came from industry, the wholesale sector and financial services, leading to a rise in GDP of 2% compared to the 1st quarter of 2013,” said the Secretariat.

The economics department, which currently expects Swiss GDP to grow 2.2% this year and 2.7% in 2015 will update its GDP, inflation and unemployment forecasts on June 17th. The Swiss Central Bank expects the economy to expand at about 2% this year and will update its projection when it holds its quarterly policy review on June 19th.

Current Swiss Franc (CHF) Exchange Rates