Tag Archives: does
What has happened to the Swiss Franc? What does this mean for the future? How does it work? Shall I pay off my Swiss Franc mortgage? Minimum level against the Euro – Australian GDP better than expected too…
Yesterday saw the largest movement for the Swiss Franc in its history as the Swiss National Bank decided to set a minimal level for the Franc against the Euro. Within ten minutes the CHF weakened by roughly 8% against everything as CHF was sold off rapidly by the SNB to get from 1.10 to 1.20 against the Euro, also against the Pound we saw similar movements as GBP-CHF went to 1.38 from 1.25!
Lets see what has actually happened here and what effect this may have gonig forward not just for EUR and CHF but for many other currencies too….
The Swiss are in effect saying they will buy unlimited quantities of of currency in order to keep the EUR-CHF rate at a minimum level of 1.20, personally if I had an investment in Swiss Francs and at some point I had to bring it back into Euros then why hold on now, I would sell it straight away as by all accounts the SNB say it will never get any better than this to sell…. This may lead to a large sell off of CHF in the coming weeks and months which may weaken the Swiss Franc and lead to investors looking for other places to store their funds.
On the other hand justhow much money have the SNB got to combat this??!! By decreasing the value in Swiss Francs it will increase demand, and many investors will no doubt see this as a buying opportunity which may mean that the SNB face an ongoing battle against investor appetite, the longer this goes on the more they have to draw on and do they really have a bottomless pit of money?? I don’t think so!
Yesterday saw the Pound lose ground against most majors following this, we slipped below the 1.60 mark against the Dollar as investors turned to gold (priced in Dollars) and also the Euro and antipdean currencies gained as it appears Sterling is still nowhere near the currency of choice.
Last night saw Australian GDP figures released and they came out 1% growth for their economy, much better than the 1% expected and leading to a good bit of AUD strength….. This goes to show Australiais still boxing on well in the global economic nightmare compared to the U.K showing a rather dismal 0.2%. Be aware this may lead to the AUD being fairly solid again in the near term so those of you with transactions to make may wish to think fast.
If you have a Swiss Franc mortgage, you are emigrating to Australia, you have business transactions to send overseas or any general need to transfer anything from £1000 to multi millions from one bank account to another involving a currency exchange then contact me directly djw@currencies.co.uk or by calling me during U.K office hours on +44 (0) 1494 787 462 and I will be happy to help you get the best rate along with a great level of customer service.
I look forward to hearing from you and heres to another busy day on the markets! 
Bank of England Minutes – Members vote 9-0 in favour of no change at all to interest rates – No sign of an interest rate hike for a long time – What does this mean to your transfer?
This morning saw the Bank of England minutes released, and as predicted led to Sterling weakness, not great news at all for those of you looking to send money overseas. The members of the MPC (Monetary Policy Commitee) voted 9-0 in favour of no interest rate movement at all. Markets move on rumour as well as fact and have already moved down slightly following this release. An interest rate hike is usually seen as positive for the currency concerned as it makes it much more attractive to investors (would you rather put you money in the U.K earning little to no interest or in Australia getting up to 7%???)
Now that all members are in full agreement it does really push the chances of a hike back condsiderably and some analysts are even questioning the chance of it happening at all in 2012, this may now hamper any serious Sterling strength in the short term against all major currencies. I am still in the belief that we may see Euro weakness at some point as there are just so many problems within Europe however when and how much is hard to work out, as the Euro has still managed to stand fuirm over the past year or so even though it is taking plenty of hits.
Should you have a pending currency transfer and want to achieve the very best rates of exchange we can save you anything up to 4% over using your bank – I work for Foreign Currency Direct and we are an FSA regulated company authorised as a payments institute so you can be sure you know you are dealing with a highly professional and safe company that has now been trading for over 11 years and currently has over 40,000 happy clients. Email me directly djw@currencies.co.uk or call my direct line 01494 787 462 during U.k office hours and I will be happy to explain exactly how I can help, I deal with Personal or Corporate transactions from any amount of £1000 to multi millions.
I look forward to speaking with you soon.
