The slides on Pound to Swiss Franc exchange rates which have been ongoing since last Thursday, but today it seems the slide has halted. GBP/CHF rates have hit the 1.26 mark again but seem to be holding steady.
The reason for the stop in the slide? Finally some good news from the UK economy after a slew of poor news in line with the weather recently.
Initially the Pound had been sliding because the discourse on whether the UK would be raising interest rates suggested that little progress would be made in the short-term. This was following the release of the Bank of England’s latest growth forecasts and wage data for the UK economy.
This was compounded by further disappointments with UK inflation which hit the wire yesterday morning at 9:30am, causing the alarming slide which punctuated what had been a fairly stable period for GBP/CHF rates.
Luckily for Swiss Franc buyers the dominant narrative of Pound weakness was interrupted today.
The UK economy graduated to its best employment rate in over 40 years, showing resilience and healthy investment by UK companies into growth.
This allowed the Pound to climb against all its major counterparts, not just the Swiss Franc.
How will rates move from here?
Unfortunately for Swiss Franc buyers, the current turmoil in the US means that CHF value is benefiting from its safe haven status, which is why the gains against the Swiss Franc were the lowest of the Pound’s pairings. As such there is still a hefty amount of risk, and the only way to eliminate this risk is to secure an exchange rate sooner rather than later.
This will likely dictate Sterling rates for the rest of the week, so anyone planning a transfer can contact me on [email protected] to discuss a strategy for your transfer based on the outcome aimed at maximising your currency return, whether this be buying or selling Swiss Francs.
I have never had an issue beating the rate of exchange offered elsewhere, so a brief conversation could save you thousands on a prospective transfer.