The pound to Swiss Franc exchange rate remains in a volatile position susceptible to risks of deterioration from outside global events. The Franc being a safe haven currency leaves it at the mercy of some international events which can cause a flight to safety as investors use the Franc’s stability and strength as a safe haven from risky factors elsewhere. The outlook on the GBPCHF rate for me is likely to see a stronger Franc as the pound whilst more resilient is likely to come under increasing pressures later in the year.
If you are buying Francs with the pound then rates above 1.25 are I believe a strong reason to be positive about the current market. With the pound much improved but flirting with 1.20 not so long ago this improvement is I believe well worth taking advantage of since it offers up much better opportunities for clients buying the Franc.
Longer term investor fears over just what is next for Brexit will I believe send the pound lower and the uncertainty present in financial markets over the European elections, Greek debt crisis and also US foreign and trade policy will ultimately cause investors to think twice about where they put their money leaving the Franc high and dry and stronger.
If you have a transfer buying or selling the Franc there is a whole host of important economic data due this week and some key political events taking place in the coming weeks and months which will act as a driver on the exchange rate. For more information at no cost or obligation please don’t hesitate to speak to me Jonathan Watson by emailing [email protected]