The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate advanced by around 0.45% on Wednesday afternoon.
In response to relatively positive minutes from the Bank of England’s (BoE) most recent policy meeting, the Pound strengthened versus the majority of its most traded currency competitors. The advance was somewhat slowed, however, given that policymakers unanimously voted in favour of holding the cash rate.
The Swiss Franc, meanwhile, softened versus many of its major peers after a ZEW Survey for Economic Sentiment revealed expectations of a steady or weaker Franc. This will be a positive for the Swiss National Bank (SNB) as the Franc is significantly overvalued.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.4606.
Pound Sterling (GBP) Exchange Rate Forecast to Advance versus the Euro on Greek Woes
With geopolitics in Europe weighing heavily on investor confidence, the Pound rallied against its European neighbour.
Bank of England policymakers voted in favour of maintaining the lending rate, but the Pound strengthened despite this. This can be attributed to speculation that the slack in the UK economy will dry up within a year. This would cause inflation to rise and prompt policymakers to tighten policy in response.
Additional Sterling gains can be attributed to BoE officials stating that they expect accelerated economic growth in the second-quarter.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate dropped to a low of 1.4508 today.
Swiss Franc (CHF) Exchange Rate Forecast to Soften versus the Pound on Economic Sentiment Survey
The ‘Swissie’ (CHF) is expected to remain at its current level or weaken further in accordance with a ZEW Survey for Economic Sentiment. This caused the Franc to decline, a move welcomed by the SNB after the removal of the Euro cap caused a massive ‘Swissie’ surge.
‘This drift in expectations away from an appreciating Franc toward a stable exchange rate or even a depreciating Franc may have something to do with indications seen in recent weeks that the SNB has been buying foreign currencies,’ Credit Suisse said.
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Hold Gains on Absence of Data
With a lack of further economic data publications to provoke changes, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is likely to hold gains for the remainder on Wednesday’s European session. Thursday could see heightened GBP/CHF volatility with several British data publications due for release.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate climbed to a high of 1.4609 today.
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