Since the UK public decided to vote out of the European Union GBPCHF exchange rates have dropped 22 cents. To put this into monetary value a 200,000 Swiss Franc purchase now costs an extra £26,000 and I believe buying the Franc is going to get more expensive next week.
The Bank of England are set to release their latest interest rate next Thursday. Many economists are predicting further cuts potentially to 0%. When a central bank cuts interest rates it entices investors to move their assets out of that currency and into another currency that provides a higher yield.
Personally I believe there is a 50-50 chance the 9 members of the monetary policy committee will vote in favour to cut rates. Either way I still expect sterling weakness as Governor Mark Carney will address the public after the decision and of late he has taken a dovish tone which has devalued the pound.
For Swiss Franc buyers, a trade sooner rather than later seems wise!
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! **