How much lower will GBPCHF go now?

Given the uncertainty over the UK and the Brexit, the likelihood is for the pound to come under further selling pressures. Given too that the Swissie is used as a hedge against uncertainty it is no huge surprise there has been a large rift on this currency pairing with the rate having slipped further and further. The Swiss Franc continues to be a very strong currency despite negative interest rates and the ever looming prospect of some form of intervention by the SNB. The Swiss National Bank could at anytime announce measures to weaken their currency, the problem with such a strong currency is that it weighs very heavily on exports and since the Swiss economy does export many high value good globally a strong France isn’t good for their economy.

Nevertheless the strong inflows of capital helps to fuel a buoyant financial services sector and the confidence in the Franc does not appear to be too unlikely to be unsettled anytime soon unless the SNB intervenes but this is not looking too likely at present.

If you have any transfers to buy CHF with sterling I think moving sooner rather than later is the most sensible option to avoid further worry and uncertainty down the line. For more information on managing your GBPCHF exposure please email me Jonathan Watson on [email protected]