Today at 8.30am the Swiss National Bank decided to keep the deposit rate unchanged at -0.75%. The Swiss National Bank also stated they would carry on intervening within the currency market to keep the Franc from strengthening too much as they believe its still significantly overvalued.
Many analysts believe further cuts will occur in a bid to devalue the Franc. The Franc soared back in 2015 when the pegging was lifted between the Franc and the Euro.
Furthermore the SNB have predicted Consumer Prices are expected to fall this year to 0.4%, inflation should progressively rise to 0.6% by 2018 and Swiss GDP is expected to show growth around 1.5% by the turn of the year.
Looking ahead its hard to see the Franc strengthening further, therefore if you need to buy a foreign currency taking advantage of current levels might be your best option.
Looking ahead, next Tuesday the Swiss State Secretariat for Economic Affairs release their latest economic forecast. In addition Trade Balance, Exports and Imports will be released at 7am. This is the only data release to look out for next week and could cause volatility.
The currency company I work for enables me to buy and sell CHF at rates better than other brokerages and high street banks. If you are buying or selling euros this year feel free to send me the currency pair you are trading (CHFUSD, CHFGBP, CHFEUR) the reason for your trade (company invoice, buying a property) and I will email you with my forecast for the currency pair [email protected]. Alternatively if you would like to discuss your requirements over the phone call 01494-787478 and ask to be put through to Dayle Littlejohn
** If you are already using a brokerage and would like a comparison this will take you 2 minutes and could save you a considerable amount of money! **