The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate softened by around -0.29% on Friday morning.
After the Bank of England’s Chief Economist, Andrew Haldane, stated that both rate hikes and rate cuts could be possible, the Pound dived versus the majority of its most traded currency rivals. British data is likely to impact upon Sterling movement later on Friday morning.
The Swiss Franc, meanwhile, is generally trending lower versus the majority of its most traded currency peers with continued speculation that the Swiss National Bank (SNB) will intervene in the markets to devalue the Franc.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.4563.
Yesterday…
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate rallied by around 0.51% on Thursday morning.
After the shared currency softened with quantitative easing taking hold, the Pound strengthened versus many of its major peers as a result of the prospect of cheaper imports. The Sterling appreciation is also a result of fears that the recent bearish run was overdone.
The Swiss Franc, meanwhile, softened versus most of its major competitors after Switzerland’s trade surplus narrowed a little. Perhaps the dominant force causing the Franc downtrend is speculation that the Swiss National Bank (SNB) will intervene in the market after complaining about overvaluation.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.4757.
Pound Sterling (GBP) Exchange Rate Strengthens as Euro Declines
Given that the Eurozone is Britain’s biggest trading partner, a softer single currency is beneficial for the UK. Having rallied recently amid positive sentiment towards the European Central Bank (ECB), the Euro’s downtrend signifies that quantitative easing is having an effect.
Sterling gains are likely to be somewhat laboured, however, with the black cloud of political uncertainty weighing on demand for the British asset. The forthcoming general election outcome is particularly difficult to predict as it is being described as one of the most hotly contested in modern political history. One thing is for certain, however, with several parties offering a referendum on European Union membership should they gain victory, the possibility of a Brexit has stymied investor confidence.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate dropped to a low of 1.4655 today.
Swiss Franc (CHF) Exchange Rate Dives as Trade Surplus Narrows
Thursday’s Swiss data was generally disappointing, on the whole, which caused the ‘Swissie’ (CHF) to soften versus most of its major peers. February’s Trade Balance dropped from 3.41 billion to 2.47 billion after exports contracted by -2.8% and imports grew by 3.1%.
Lubricating the Swiss Franc slide was a report from the SNB which showed policymakers were still concerned that the Franc was massively overvalued. This amplified speculation that the institution was willing to intervene once again in order to cause a significant declination.
‘The SNB will continue to take account of the exchange rate situation, and its impact on inflation and economic developments, in formulating its monetary policy,’ the central bank said. ‘It will therefore remain active in the foreign exchange market, as necessary.’
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Hold Gains
Although political uncertainty is weighing heavily on demand for the Pound, the likelihood of SNB intervention is causing the desired downtrend. Therefore, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is likely to hold gains for the remainder of the European session.
With very little by way of influential domestic data pertaining to either nation, the GBP/CHF exchange rate is likely to fluctuate in response to currency market movement and geopolitics.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate climbed to a high of 1.4792 today.
