Will the pound continue to rise against the Franc?

The GBPCHF rate has been improving for Franc buyers as confidence over the progression of Brexit increases. The Franc is most famous for being a ‘safe haven’ currency which means it performs well in times of uncertainty. Well, the opposite is also true with increased certainty in financial markets encouraging investors to seek out a higher and more rewarding return further afield.

If you need to buy the Swiss Franc with the pound we are now at some of the best rates to buy since the Referendum 19 months ago. The pound had struggled on the initial Brexit decision and has remained very sensitive to the developments. The overall expectation is now with progress having been made in December on a withdrawal deal, the UK can seek closer ties with the EU and avoid the worst no-deal scenario which has haunted the pound so much.

Increased confidence over the outlook on Brexit has helped the pound to rise and the reduced uncertainty ties in with a more confident and optimistic global economy which explains a softening on the Franc. Declining tensions over North Korea and an expectation 2018 could be a solid year for the global economy has all seen the Franc weaker.

Essentially there is less need for investors to be holding their funds in Francs to protect from uncertainty from the issues mentioned above, there is less risk in the market. Whilst pointing in the right direction there is always the potential for surprises and it is often just when confidence reaches a peak, that uncertainty creeps in.

If you have a transfer to make buying or selling Francs please speak to us to keep up to date with the latest trends and themes in the market. Please contact me Jonathan Watson to discuss your situation and run through how we might be able to assist you.

Thank you for reading and I look forward to hearing from you, please email me on [email protected].