GBP/CHF rates have jumped during the first official day of trading in 2017, with the pair hitting 1.2657 at today’s high.
The Pound gained support this morning following positive UK Manufacturing data, which came in well above market expectation. This increased market confidence in the UK economy and the Pound has ultimately benefited as a result, gaining a cent on the CHF.
Investors will follow economic data releases extremely closely and generally factor in the expected outcome. When we see a release outside of the expected remit you generally find the markets react accordingly, depending on whether this is a positive or negative outcome.
The Pound has generally found life tough going against the CHF over recent weeks, having seen it put pressure on 1.30 before retracting below the current levels.
The CHF is seen as a safe-haven currency by many and as such, will hold its value better than other currencies during times of global economic downturn. We also need to consider the on-going trepidation surrounding the UK’s Brexit from the EU and the uncertainty this has created.
Article 50 is being triggered in March and with concerns over future trade deals and growth prospects for the UK, investors are likely to proceed with extreme caution. This in turn will likely handicap any major advances for the Pound, at least until we have a clearer picture of how we will facilitate our Brexit and have an understanding of any knock on effects that we are likely to encounter.
Personally, I would be looking to take advantage of any short-term spikes for Sterling, rather than gamble on a sustainable improvement up towards, or even beyond 1.30.
We have a team of experienced brokers who can help guide you through this turbulent market and provide you with the best exchange rates under any market conditions. If you would like to be kept up to date with all the latest market movements, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to call us on 0044 1494 787 478 and ask one of the team for Matt.
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