The pound to Swiss Franc rate could hit 1.30 very soon as the market gets closer to this important level of resistance that could easily break through in the coming weeks. The overall expectations for the pound to strengthen on the back of a strong UK election for the Conservatives remain, the Franc should weaken as we get some news of who is the next French President. I personally doubt that Marine Le Pen will win but we might see some problems and weakness from the situation that could strengthen the Franc. The uncertainty around the French election is seeing a stronger Franc which is not helping Swissie buyers!
Overall expectations for the pound to slide have not manifested too much today even with UK GDP coming in lower. Overall expectations for the Franc are for the pound to continue to rise particularly if Theresa May wins. I, therefore, believe that the next few weeks could see a volatile period for GBPCHF exchange rates as we get the results of the UK and French election. More than likely a deal over 1.30 is possible in the coming weeks as we get closer to certainty for the UK and also a relief rally on the Franc.
The Swiss Franc will weaken once a French election finishes if Macron wins as it a risk negative event. Macron is seen as the safe candidate for European politics and as the Swissie is a safe haven currency, the currency would weaken as we learn that for now, Europe is safe from the more nationalistic tendencies that have sprouted in recent years, that threaten the European ideals to their core.
Most commentators believe that the pound will rally after the UK election so if you need to buy sterling with Francs, moving sooner rather later. If you have a transfer you wish to consider please don’t hesitate to get in touch with me Jonathan by emailing [email protected] to discuss further. I have been working in such a role for almost ten years and am very confident I can offer some useful insight and information to help you with any payments.