GBP/CHF Rates Drop Ahead of Christmas Slowdown (Matthew Vassallo)

GBP/CHF rates have dipped over the past week, as the markets start to slowdown ahead of the Christmas period.

Market trends become harder to predict at this time of year, due to the fact there is less capital injected by investors. Less liquidity ultimately equals less stability and the Pound may be suffering due to investors pulling their funds away from it and into safer haven currencies such as the CHF.

Sterling had moved through 1.29 only a few days ago before retracting to the current levels of 1.2650, providing those clients holding CHF with a window of opportunity before the markets shut for Christmas this weekend. Whilst the CHF likely to find protection under 1.30, the Pound has certainly gained a foothold across the board in recent weeks.

Sterling has benefited from an upturn in the UK economy, which was confirmed by Bank of England (BoE) governor Mark Carney. Whether this trend will continue into 2017 is difficult to say, as I feel the UK’s upcoming Brexit will continue to drive market sentiment in the months ahead.

Personally, I would avoid gambling on the current market and until we have a clear picture of how the UK will facilitate its exit from the EU, the current instability and uncertainty is likely to remain.

Therefore I would be looking to take advantage of any short-term opportunities for both buyers and sellers and avoid the potential pitfalls that lie ahead.

If you have an upcoming GBP or CHF currency exchange to make and you are concerned by the increased market volatility of late, it may be wise to look at protecting the gains you’ve made, or limiting your losses with one of our forward contracts, rather than gamble on what has become an increasingly volatile and unpredictable market.

If you would like to be kept up to date with all the latest market movements ahead of your currency exchange, or simply wish to compare our award-winning exchange rates with your current provider, then please feel free to contact me on 0044 1494 787 478 and ask one of the team for Matt. Alternatively, I can be emailed directly on mtv@currencies.co.uk