GBP/CHF rates have taken a massive dive today following another clear example of a seriously negative events bolstering a safe-haven currency such as the Swiss Franc.
In this instance, the European Central Bank decided to cut their base interest level to 0.0, in a bid to stimulate spending due to their recent worries with deflation.
This decision signaled a mass sell-off of Euros and the capital was moved into nearby safe-haven currencies, in this case the Swiss Franc.
Severe increases in demand are what regularly cause the price for a particular currency to sky-rocket, which is what we can see here.
What regularly happens following these moments is a gradually deflation in the value of the Franc. This artificial increase in its value rarely holds, which is what we are seeing on the currency markets already with rates beginning to tick backwards.
I strongly recommend that anyone with Swiss Francs to sell should contact me overnight for a free quote on their transfer – [email protected] -. Swiss Franc buyers can do the same, and I can outline how best to approach the currency markets when gradual gains are expected.