The Pound Sterling (GBP) has made a gain of 1.4% against the Swiss Franc (GBP/CHF) this afternoon and seems set to keep rising, if prior patterns are anything to go by.
Falling Gold Price and Rising UK Optimism Cement Pairing Direction Today
The Pound’s (GBP) meteoric rise against the Franc (CHF) today was first caused by the better-than-expected borrowing data of the morning; this afternoon, the once-again declining price of gold per 100 ounces has combined with a hawkish speech from George Osborne at Davos to secure Sterling’s position, potentially into the weekend.
Earlier…
The Pound Sterling (GBP) has made a 0.4% rise against the Swiss Franc (GBP/CHF) today, which has largely been brought about by investor optimism for the impending UK Public Sector Net Borrowing and Retail Sales stats for December.
Better-than-Expected Borrowing Results for UK could Trigger Major GBP Uptrend
The near-future will bring the announcement of the UK’s Public Sector Net Borrowing results for December, which at the time of writing were expected to show a fall in the budget deficit from a previous 13.6bn to 10bn.
Earlier…
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate has risen somewhat today, although the Pound (GBP) remains weak overall due to a loss of confidence in the momentum of the UK Referendum process.
GBP/CHF Exchange Rate News: Davos Speech Brings Mixed Signals from UK PM
The Pound Sterling (GBP) has made an advance of 0.2% against the Swiss Franc (GBP/CHF) and a greater 1.9% rise against the Russian Ruble GBP/RUB) today, although elsewhere losses of -0.5% against the Australian Dollar (GBP/AUD) and -1.5% against the Canadian Dollar (GBP/CAD) have been seen.
The biggest event affecting Pound Sterling today has been a speech delivered by David Cameron at the World Economic Forum (WEF) in Davos this afternoon. While it was previously thought that the provisional end of February deadline for finalising the UK referendum conditions would be kept to, Cameron instead stated that he was ‘not in a hurry’ regarding this.
Adding to the contradiction, however, the PM also urged business owners in the UK to make their support of the ‘In’ vote vocal, despite his apparent personal complacency with finalising the fine print.
Gold Price Crash sees ‘Swissie’ (CHF) Hit the Rocks Today
The Swiss Franc (CHF) has made little movement to be proud of today. The best result has been a tight trending against the Euro (CHF/EUR), while among the Swiss currency’s declines have been losses of -0.5% against the Pound Sterling (CHF/GBP) and the US Dollar (CHF/USD) and a greater slip of -1% against the Australian Dollar (CHF/AUD).
This downfall comes just past the one year anniversary of the Franc being unpegged from the Euro (EUR), although the more salient point has been that the price of gold has fallen from over $1105 to $1094.2 since yesterday.
GBP/CHF Exchange Rate Forecast: Swiss Trade Balance due Next Week, UK Borrowing Stats Out Tomorrow
The near future will bring only UK-based economic announcements, although any further developments out of Davos may still impact both currencies.
Tomorrow has the UK Borrowing figures for December scheduled for release, along with the nation’s Retail Sales for the same month. Current forecasts are somewhat optimistic, with less borrowing expected to take place than before and for Retail Sales to merely decline from 9.9% to 3.5%.
Looking further ahead, Tuesday will bring the Swiss Trade Balance result for December, which was expected to show a surplus rise from 3.1bn to 3.3bn.
Current GBP, CHF Exchange Rates
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending in the region of 1.4350 and the Swiss Franc to Pound Sterling (CHF/GBP) exchange rate was trending in the region of 0.6975 today.
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