The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate retained losses following the release of the UK’s Consumer Price Index.
The gauge of inflation showed that the pace of consumer price growth slowed markedly in November, easing from 1.3% in October to 1.0%.
The core CPI measure fell from 1.5% to 1.2%.
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Holds Decline, UK Inflation Eases
After the data was published the Pound was trending lower across the board and the GBP/CHF exchange rate fell to a low of 1.4995.
Earlier…
GBP/CHF Exchange Rate Weakens, UK CPI on Tap
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate fell by 0.2% during the European session prior to the release of the UK’s inflation report.
If the rate of consumer price gains slowed in November, as economists expect to be the case, the GBP/CHF exchange rate could extend declines in the hours ahead.
Conversely, an unexpected uptick in UK CPI could push the Pound higher during the European session.
GBP/CHF Exchange Rate Sheds 0.15%
As the European session progressed on Monday, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate eased to a low of 1.5113 as investors dwelt on the UK’s soft house price report and ditched the Pound ahead of tomorrow’s British Consumer Price Index.
The expectation that the measure of UK inflation will show a slowing in consumer price gains in November kept the Pound under pressure and trending lower against several of its main peers.
Earlier…
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate achieved a high of 1.5192 during the European session before trimming gains to trade around the day’s opening level of 1.5137.
GBP/CHF Gains on Producer Price Slide
At the close of last week the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate declined as falling European and Asian stocks pushed investors towards safe-haven assets – boosting demand for the Franc.
The Swiss currency gained on rivals like the Pound, Euro and US Dollar, but pared its advance as a fresh week of trading got underway.
While the Pound softened against several of its most traded currency counterparts as a result of the UK’s house price report showing a decline in property values, Sterling was able to hold its own against the Swiss Franc.
The Franc also eased lower against the US Dollar as data published by the Swiss Statistics Agency showed that the nation’s Producer and Import Price Index dropped by -0.7% in November on the month.
This followed a monthly decline of -0.1% in October and took the annual figure to -1.6% from -1.1%.
In the press release accompanying the figures the Swiss Statistics Agency stated; ‘The decline for both domestic and imported products amounted to 0.7%. This was primarily attributable to lower prices for petroleum and petroleum products as well as for pharmaceutical products which are collected on a quarterly basis.’
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast
In the week ahead movement in the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate could be caused by the UK’s Consumer Price Index, British employment figures, the Bank of England’s meeting minutes and UK retail sales stats.
Factors which could be Pound Sterling beneficial include acceleration in the pace of consumer price gains, a rise in average earnings (or a decline in unemployment) a split vote from the Monetary Policy Committee on the subject of interest rate hikes and an impressive retail sales gain.
Swiss reports to be aware of over the next five days include the nation’s KOF Winter Economic Forecast, ZEW Expectations Survey, SECO December Economic Forecasts and domestic trade balance figures.
The trade balance data is likely to have the biggest impact on the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate.
The GBP/CHF pairing could advance if Switzerland’s trade surplus is shown to have narrowed from 3.23 billion to 2.92 billion in November, as economists have forecast.
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,1.5140,
Euro,, Swiss Franc,1.2010,
US Dollar,, Swiss Franc, 0.9664,
Australian Dollar,, Swiss Franc, 0.7955,
New Zealand Dollar,, Swiss Franc,0.7480,
Canadian Dollar,, Swiss Franc,0.8344,
[/table]
