Swiss Franc to Pound (CHF/GBP) Exchange Rate Trends High, Swiss Franc to Euro (CHF/EUR) Exchange Rate Cools

The Swiss Franc (CHF) advanced to its highest level in 3-months against the Pound (GBP) and was holding ground close to a two-year high against the Euro (EUR) on Monday despite the release of domestic economic data showing that retail sales in the Alpine nation fell.

Against the Pound, the Franc was able to surge higher alongside all other major currencies as sentiment towards the UK currency took a hammering as concerns increased that, Scotland could vote in favour of independence on September 18.

Fears intensified after a poll released by a Sunday newspaper showed that the pro independence Yes campaign has taken the lead over the pro Unionist No campaign for the first time.

With the vote just days away economists raised that bets that even if the No campaign does win the issue regarding independence will not go away.

Also weighing upon the Pound was the publication of a report released on Monday, which showed that UK house prices fell last month.

With the Scottish, issue dominating the headlines we can expect the Pound to remain under significant pressure against the Franc and other major peers until the result of the independence vote is released.

The Swiss Franc was also able to hold onto gains against the weakened Euro even as data released by the Swiss Federal Statistical Office showed that retail sales in the country declined unexpectedly in July. Sales dropped by -0.6% at an annualised rate in July, disappointing expectations for a rise of 2.6%.

A separate report meanwhile showed that Consumer Price Inflation in Switzerland was unchanged last month from the preceding month.

The data published showed that price inflation was flat last month, better than the fall of -0.1% forecasted by economists.

Following the data releases, the Franc fell marginally against the US Dollar and other peers.

Against the Euro the Franc was able to hold onto a two year high as last Friday’s surprise decision by the European Central Bank (ECB) to cut interest rates and announce an asset-purchasing programme.

Also weighing upon the Euro was the release of a separate report, which showed that investor confidence in the Eurozone fell sharply to its lowest level in 14 months, adding to concerns that the Eurozone economy could be close to sliding towards a recession.

Sentix said its index of investor confidence tumbled to -9.8 this month, the lowest since July 2013, from a reading of 2.7 in August.

Analysts had expected the index to decline to 2.0 in September.

UPDATE

The Swiss Franc to Pound Sterling exchange rate is currently trending in the region of 0.6627.
The Swiss Franc to Euro exchange rate is currently trending in the region of 0.8292.

Anxieties over the Scottish Referendum have not subsided on Tuesday morning and the Pound has continued to lose ground against the Swiss Franc. This is in spite of better-than-expected UK sales data.

The Swiss Franc to Euro exchange rate has cooled a little over night as traders price in the negative Swiss retail sales data from Monday. With nothing by way of Swiss or European economic data the exchange rate is likely to experience minimal movement.