The Pound to Swiss Franc exchange rate has continued to fall over the last few days when initial exit polls came out on election night which suggested that the final result would end up with a hung parliament with no party able to form a majority government.
The exit polls were in this case expertly predicted and the Conservatives were unable to form a majority government and as of yet the Tories have not yet been able to form a majority government with the DUP.
The Queen’s Speech has also been delayed which was originally planned to take place next Monday.
When a hung parliament happened a few years ago between the Tories and the Liberal Democrats this ended up with almost 3 weeks before we knew which parties would take things forward.
Once a coalition was formed this helped to boost the Pound vs all major currencies including against the Swiss Franc.
However, one issue to bear in mind is that once the majority government has been formed this then means that the Brexit negotiations will be able to commence and in my opinion I think the talks will be made very difficult and protracted in an attempt to discourage other countries from having their own referendum to leave the European Union.
Tonight the US Federal Reserve will be meeting to discuss interest rates and the likelihood is for an interest rate hike.
If this happens this could result in a short term problem for the Swiss Franc vs the Pound so if you’re considering buying Swiss Francs then keep a close eye on this announcement tonight.
Having worked for one of the UK’s leading currency brokers since 2003 I am confident not only of being able to offer you better exchange rates compared to using your own bank but also offer you different contract types typically unavailable from a high street bank.
To find out more information or if you would like a free quote when buying or selling Swiss Francs then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]