GBP/CHF rates have remained fairly static over the past month, despite the Pound touching a high of 1.26 during today’s trading.
The current levels seem to be providing the CHF with ample protection and a move towards 1.30 looks unlikely in the short-term.
Sterling has made a positive move against most of the other major currencies of late, although this morning’s poor UK Inflation data has halted that momentum for the time being. However, it has not made a similar impact against the CHF and this is likely due to the CHF’s status as a ‘safe haven’ currency.
This means in times of global uncertainty investors will pull their money out of riskier currencies and move it into the CHF, as this will hold its value better than others. With so much uncertainty around the current global economy and in particular the UK’s upcoming Brexit, this safe haven status becomes very attractive to investors, who are looking to protect their currency positions.
Despite some of the uncertainty surrounding the UK’s exit from the EU being removed of late, there are still many unanswered questions about how the UK will actually facilitate this exit and what status the UK will hold in terms of key trade partners in the future.
All of this leads to a lack of investor confidence and even though UK Prime Minister Theresa May remains on course to trigger Article 50 in March, the long-term outlook for the UK economy remains clouded at best. This in turn is handicapping any major advances for Sterling and a sustainable increase against a solid currency like the CHF remains unlikely in my opinion, certainly over the next couple of months.
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 firstname.lastname@example.org and can answer any queries you have about the current market trends & forecasts.