Sterling has fallen as low as 1.1565 against the Swiss Franc within the last 52 weeks according to come sources, with the ‘flash crash’ being the reason it fell so low due to automated trading systems applying unnecessary pressure on an already weakening Pound just a couple of weeks ago.
With the flash crash aside the downward pressure on the Pound due to ‘Brexit’ and it’s ongoing fallout, 1.20 seems like a more reasonable lower benchmark and personally I feel as though the Pound will find support at this level as we’re currently witnessing.
After some touch talk by a number of European leaders such as Donald Tusk and Francois Hollande regarding a ‘Hard Brexit’, the language surrounding the ‘Brexit’ has softened since and this has been reflected in Sterling exchange rates as we’ve seen the currency recover slightly against most major currencies, even if the recovery has been gradual.
As it stands I think that the invocation of Article 50 next March has already been priced into the Pound’s value, so for the currency to drop below the 1.20 support I think there needs to be a significant revelation as the Pound has already fallen over 17.5% against CHF just over the past year.
There are usually economic events which can create sharp swings in within exchange rates, and the next one is likely to be this afternoon as governor of the Bank of England, Mark Carney will be giving a speech at 3.30pm later today. Expect any references to further monetary easing or interest rate cuts to weaken Sterling and feel free to get in touch if you wish to discuss converting currency around this event.
If you would like to discuss an upcoming currency exchange between GBP and CHF, it’s worth your time getting in contact with me on [email protected] in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.