Today saw the biggest drop for Sterling since 2009 against the dollar and against Euro it was 1% down in the 1.28’s. Boris Johnson joining the leave campaign created a lot of momentum and will most likely become the main focal point for the campaign. However the market recognised Mr Johnson joining the campaign as a real threat and Sterling struggled against all currencies. Tomorrow there will be a large amount of German data releases and as the engine room for the Euro this could create a little volatility.
Any ground that gets made by Sterling tomorrow will only be making up lost ground from today. Sterling will be under continued pressure as the referendum is now booked in for 23rd June, which gives a countdown to a major day. There will start to be speculation as to what will happen depending on the outcome, I imagine businesses will start to declare their intentions. This will create uncertainty and big businesses could start to effect the currency rate with their decisions. Furthermore depending on what side certain individuals take could have a huge effect on the sway, if the leave vote starts to get momentum the market will panic.
The GBP/CHF rate dropped to 1.4027 today but towards the end of the day the rate returned to 1.4138. The rate doesn’t normally move this significantly however the moment Boris declared he was in the Leave campaign there was a significant drop in the rate.
Please contact me if you would like to find out any further information regarding Swiss Franc and Pounds. I am happy to provide you with information that will allow you to make the most informed decision when changing currencies. No matter how small the transaction there is always money to be saved by making a well-timed and educated decision. If you would like to get in touch please contact me Ben Fletcher at [email protected] and hopefully I can be off assistance to you.
