Brexit Looming – Where Next for GBP/CHF Exchange rates? (Matthew Vassallo)

With the UK’s Brexit looming on the horizon (assuming there are no delays by the House of Lords), many clients are now questioning which direction GBP/CHF rates will take over the coming weeks and months?

My personal view is that whilst the Pound has gained something of a foothold over recent days, with a move towards 1.26 today, I would not be gambling on a major spike from the current levels. Sterling is still fighting an uphill battle, with investor confidence in the UK remaining fragile at best.

I certainly feel that the current uncertainty surrounding the UK’s exit from the EU and how the government intend to facilitate this is weighing heavily on the markets and as such confidence in our future growth prospects is easily knocked.

For this reason, alongside the fact that investors view the CHF as a safe haven currency, means I would not be prepared to gamble on sustained improvement for the Pound in the short-term. The markets are eagerly awaiting the triggering of Article 50 and the subsequent trade deals that will be in place for the UK. Until investors have some solid information to work with the Pound will face resistance against the more reliable CHF.

Any move towards or above 1,30 is unlikely in my opinion under the current market conditions and as such I would be looking to take advantage of the current spike, rather than gamble on what has become an increasingly unreliable and unpredictable market.

If you have an upcoming GBP or CHF 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 protected] and can answer any queries you have about the current market trends & forecasts.