Sterling has made inroads against the CHF following this morning’s Supreme Court ruling, regarding the triggering of Article 50.
This morning decision was being monitored from all quarters of the market, as the Supreme Court confirmed that the UK could not officially start proceedings to exit the EU until the decision had been ratified through Parliament.
This was the widely expected result and to some extent had been priced in to the current rates on GBP/CHF but once again, the currency markets went against expectation and the Pound actually value initially against the CHF. Despite a recovery during the afternoon it may be that investors overpriced today’s outcome and with so much uncertainty still hanging over the UK economy in terms of how we will facilitate our Brexit, I expect a rocky road ahead over the coming months.
The Pound has made gains over the past week, initially following a speech made by UK Prime Minister Theresa May. She seemed to soften her stance on our Brexit and as such the markets reacted positively and Sterling’s value increased as a result.
The current market remains unpredictable and Sterling’s value has wavered excessively over recent weeks. Every time the UK economy takes a step forward it is knocked back and the Pound remains handicapped by the on-going uncertainty surrounding Brexit.
We also need to consider the CHF status as a safe haven currency and a such investors will turn to it in times of global economic uncertainty. With so much controversy surrounding Brexit I still do not anticipate a sustainable run against the CHF and as such I would look to protect any short to medium-term Sterling transfers and avoid gambling on this extremely fragile and unpredictable market.
I have said to clients they should be looking for short-term opportunities rather than long-term sustainable improvement until the picture becomes clearer regarding how we will facilitate our exit from the EU and the deals that are in place subsequently.
If you have an upcoming currency transfer to make and are concerned about the current market instability, or simply wish to compare our award winning exchange rates with your current provider, then please feel free to contact us on 0044 1494 725 353 and ask one of the team for Matt.
Alternatively, I can be emailed directly on email@example.com and can answer any queries you have about the current market trends & forecasts.