The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate advanced by around 0.53% on Monday afternoon.
Although British housing data showed prices cooled in March, the Pound is generally holding steady versus most of its major peers. This is likely to be due to traders awaiting the quantitative easing purchases announcement from the European Central Bank (ECB). If the ECB shows it can finance QE properly it will be beneficial for the UK’s trade prospects and therefore the British asset.
The Swiss Franc, meanwhile, softened versus the majority of its most traded currency competitors after domestic data failed to impress.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.4893.
Pound Sterling (GBP) Exchange Rate Edges Lower on House Prices
After Bank of England (BoE) Governor Mark Carney made dovish comments with regards to rate hikes at the tail-end of last week, the Pound lost gains made from positive data. The outlook is reasonably cloudy with political uncertainty as we approach the general election, so the Pound is unlikely to enjoy a significant surge.
Aiding the Sterling declination on Monday was disappointing housing data. Rightmove House Prices grew by 5.4% in March on the year, a drop from the previous growth of 6.6%. On the month, March’s Rightmove House Prices increased by 1.0%, significantly lower than February’s growth of 2.1%.
‘This month fits the consistent pattern of ebbs and flows in many different localities within the overall London market, with prices still going up in some better-value boroughs and still going down in others that have overshot,’ Rightmove director Miles Shipside said.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate dropped to a low of 1.4806 today.
Swiss Franc (CHF) Exchange Rate Softens on PPI and Retail Sales
Swiss data produced a disappointing set of results on Monday, causing the Franc to soften versus the majority of its most traded currency rivals. February’s Producer Prices Index came in at -3.6% on the year; a significant change to the downside from the previous figure of -2.7%. Monthly PPI registered a score of -1.4% in February, down from January’s PPI of -0.6%.
In addition, Retail Sales declined by -0.3% in January on the year, a marked difference from the previous increase of 2.2%. On the month, Retail Sales cooled by -1.4% in February.
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Hold Gains
Given that the Swiss National Bank (SNB) have been calling for a Franc devaluation, and with a lack of data to curb the trend, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is likely to hold gains for the remainder of Monday’s trade.
Tuesday ought to see GBP/CHF volatility cool somewhat given the complete absence of domestic data pertaining to either nation.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate climbed to a high of 1.4878 today.
