The Swiss Franc this morning has managed to claw back some of the lost ground against Sterling in the last few days. Even after better than expected GDP figures for the UK there was still an element of caution as the UK Gross Domestic Product only grew 0.4% over the first quarter.
Today is a quiet day for the Franc however the EU and many of the major countries such as Germany, Italy and Spain will all release data. Germany is expected to report on the Unemployment Rate and Change, which both are expected to stay the same. However German Consumer Price Index will also be release which is meant to show decreases from the previous months.
Will CHF drop back below 1.40?
Sterling has jumped recently on the back of President Obama heavily emphasising the importance of Britain remaining in the UK. Whilst the jump has meant Sterling holders can buy currency for less, I believe there will still be a significant drop as we move towards the vote. Unless the Remain campaign is looking like a dead certain to win, who would trust the polls after the last UK General Election, the markets will be nervous and money will move from Sterling. This is very significant for the Swiss Franc because it’s seen as a “safe-haven” currency investors will move their money into CHF while the market makes big swings.
If you are looking to purchase Franc’s I don’t believe the rates we currently have will remain for long, I suspect however after the referendum they should return to a the mid 1.40’s if the UK remains.
Please get in contact with me at [email protected]. I am up to date with all the latest information and I would be happy to share any information you may need.