GBP/CHF rates have dipped during Tuesday’s trading, with the pair dropping to 1.4380 at today’s low. The pound has struggled across the board so far this week and this morning’s Industrial & Manufacturing Production figures have only enhance that trend. Both came out below expectation and this is likely to be the catalyst for today’s drop.
The CHF has benefited from the recent downturn in UK data and has gained almost 6 cents in the last month against GBP. This has provided some excellent selling opportunities for those clients holding CHF and it is now likely to find support under 1.50 for the foreseeable future. The NIESR UK Gross Domestic Product (GDP) estimate came out as expected and any clients holding GBP were hoping for an improvement on the previous 0.6% growth.
Looking ahead and we have some key data releases this week for the UK but it is Thursday which is likely to dominate headlines with the latest UK Gross Domestic Product (GDP) figures and subsequent monetary policy statement. Whilst rates are expected to be kept on hold at 0.5% it is the monetary policy stance of the Bank of England (BoE) which will be of most interest to investors. Any indication of future policies is likely to cause additional volatility on GBP/CHF exchange rates.
Therefore I would not be gambling on further improvement in what has become a very unpredictable market.
If you have an upcoming currency requirement and would like to be kept up to date with all the latest market movement, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact me on [email protected]