Swiss Franc before Foundation Day in North Korea

GBPCHF Strengthens on News That COVID-19 Spread Appears to Be Slowing

The Swiss Franc is in a very strong position at the moment as global uncertainties continue to help drive the Franc higher. The heightened tensions between the US and North Korea are an obvious reason why there has been a flight to the safety of the Swiss Franc. The Franc could also see additional gains this weekend if there are any developments on the Korean peninsula. This Saturday is Foundation Day which is one of the most important days in the North Korean calendar.

There is every chance that Kin Jong Un may look to demonstrate his nuclear capabilities especially after last week’s nuclear test. Any missile of nuclear tests this weekend could see funds move into Swiss Francs causing the currency to strengthen further. To date the threat of nuclear war has been largely shrugged off by the markets but any escalation could see a material change for the Swiss Franc with

GBP CHF remains weak with levels below 1.25 for this pair. The ongoing Brexit negotiation which appears to have hit a stalemate is the main driver for the pound at present and this is unlikely to change anytime soon. The debate in the House of Commons on the Great Repeal Bill which will more EU law into British law could see additional volatility for GBP CHF on Tuesday after the vote at midnight the night before.

Any clients looking to buy Swiss Francs could see a small window of opportunity in a couple of weeks’ time when UK Prime Minister Theresa May is expected to give a speech on Brexit. If received well there could be gains for the pound between 1-2% if a repeat of the Lancaster House speech from January is seen.

If you would like further information on sterling or Swiss Franc exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on [email protected]