The Pound Sterling (GBP) to Swiss Franc (CHF) exchange rate edged higher on Monday as support for the ‘Swissie’ dipped slightly as concerns over the Ukraine and Gaza conflicts eased.
The Swiss Franc was unable to make gains against the supported Pound despite data released in early in the session showing that retail sales in the Alpine nation came in stronger than economists had been forecasting.
According to the Swiss Federal Statistical Office, retail sales in the country increased by 3.4% on a year on year basis in June, smashing economist expectations for a rise of 0.3%, the figure also beat May’s decline of 0.5%.
On a monthly basis retail sales increased by 2.9%, a sharp reversal from the 0.9% decline recorded in the preceding month.
On an annual basis the sale of food, drinks and tobacco increased by 2.5% and the sale of non-food products jumped by 3.6%.
Improved market sentiment however saw the Pound and other peers such as the US Dollar advance against the safe haven Franc.
The ending of Russian military exercises on the Ukrainian border eased some of the worries over possible military intervention in the ongoing conflict between the Kievan based government and pro-Russian rebels. Government forces are now besieging the rebel’s stronghold of Donetsk.
News out of the Middle East also eased investor concerns as a ceasefire between Israel and Hamas seems to be holding.
Investors will however be keeping a cautious eye on events in Iraq as the conflict there continues to rage. Safe-haven demand eased on Friday after the USA launched airstrikes against the Jihadist forces of the Islamic State.
UPDATED 09:45 GMT 12 August, 2014
Pound Sterling to Swiss Franc Trending Higher
Although the British Retail Consortium’s Like-for-Like Retail Sales report showed an unexpected decline, the Pound was still trending in a stronger position against the Swiss Franc.
The GBP/CHF pairing was up over 0.1% as the European session got underway on Tuesday.
Economic data for Switzerland is lacking until Thursday when the nation publishes its Producer Price Index.
Before then movement in the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is likely to be driven by the Bank of England’s Inflation report and the UK’s employment figures.
Current Swiss Franc (CHF) Exchange Rates
[table width=”100%” colwidth=”50|50|50|50|50″ colalign=”left|left|left|left|left”]
Currency, ,Currency,Rate ,
Swiss Franc,
,US Dollar,1.1037 ,
Swiss Franc,,British Pound,0.6575 ,
Swiss Franc,,Australian Dollar,1.1907 ,
Pound Sterling,, Swiss Franc,1.5200 ,
Euro,, Swiss Franc,1.2130 ,
US Dollar,, Swiss Franc,0.9060 ,
[/table]
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