The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending within a tight range on Thursday morning.
With British house prices data producing mixed results, the Pound is generally edging lower versus many of its most traded currency competitors. Sterling is unlikely to see significant movement until the Bank of England (BoE) rate decision due midday on Thursday.
The Swiss Franc, meanwhile, softened versus many of its major peers as a result of the hangover from mixed inflation data. The fractional devaluation will be a welcome sight for the Swiss National Bank (SNB) after the surge following the shock Euro cap removal.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.4357.
Yesterday…
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate strengthened by around 0.31% on Wednesday morning.
After British economic data printed relatively positively, led by record-breaking car sales, the Pound strengthened versus many of its most traded currency competitors. Additional appreciation can be attributed to a survey by the Bank of England (BoE) which forecast a spike in mortgage applications over the coming months.
The Swiss Franc, meanwhile, softened versus many of its major peers after inflation data showed prices had fallen beyond expectations. This has been attributed to the hangover from the shock Euro cap removal which caused the Franc to surge exponentially.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.4352.
Pound Sterling (GBP) Exchange Rate Ticks Higher on New Car Registrations
Wednesday’s British economic data produced mostly positive results, causing the Pound to strengthen versus many of its major peers. Of particular significance was a record-breaking advance in new car sales, which saw the fourth consecutive month of growth.
SMMT Chief Executive Mike Hawes described the figures as ‘a welcome boost for the UK’s thriving automotive sector.’ However, Hawes also expressed concern that the general election result could see a leader who isn’t committed to continued growth in the sector. ‘Whatever the general election result, the new government must keep up the commitment to the sector which is delivering at home and abroad,’ Hawes says.
Also aiding the Sterling appreciation was a survey from the BoE which forecast increased demand for mortgages over the next three months.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate has fallen to a low of 1.4283 today.
Swiss Franc (CHF) Exchange Rate Softens on Swiss CPI
March’s Swiss consumer prices declined by -0.9%; the most in almost three years as a result of January’s Franc surge. When the Swiss National Bank (SNB) shocked the markets by removing its 1.20 Euro cap, the Franc advanced significantly versus all of its major peers. This lowered the cost of imports which, in turn, lowered the Consumer Price Index.
‘It’s clear, after the Franc shock, inflation will be in negative turf for some time,’ said Ursina Kubli, foreign-exchange analyst at Bank J Safra Sarasin Ltd. in Zurich.
‘We have now to see what is the impact and for the time being this is the right level,’ of rates, SNB President Jordan said in a Bloomberg Television interview in Zurich last month. ‘In the very short term, we have to accept that inflation is now below zero, negative, but that will change.’
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Hold Gains
Given the lack of domestic data to curb the trend, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is likely to hold gains for the remainder of Wednesday’s European session. With that being said, however, there is the potential for the Pound to soften as the forthcoming general election hampers investor confidence.
Thursday will be significant for those invested in the Pound with several influential data publications, including the BoE interest rate decision. British trade balance data may also impact upon Sterling volatility.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate reached a high today of 1.4362.
