It’s been a volatile day for GBP/CHF exchange rates, with over a two cent from high to low.
Sterling found plenty of support following the Bank of England’s interest rate decision and monetary policy statement this morning.
As expected the central bank kept rates on hold at 0.5% and whilst there was no change in the current stimulus programme, it was governor Mark Carney’s speech that caused the markets to react.
Carney was far more bullish than many anticipated and said that the central bank would look to raise interest rates to counter rising inflation levels, if they continue to rise.
He also mentioned that the UK economy was outperforming initial expectations, which helped boost investor confidence in the UK economy and the Pound strengthened as a result.
However, as is often the case recently the initial strength was something of a false dawn, with the CHF fighting back and by close of European trading GBP/CHF were trading around 1.3050, close to the low of the day.
Despite reports that the Swiss economic recovery was “easing”, investor confidence in the Pound seemed to drop as quickly as it had come about. Looking more closely at Carney’s comments and it certainly wasn’t all positive.
He highlighted the fact that the UK economy was still restricted by Brexit concerns and this was handicapping any major advances. He also highlighted that we have gone form the fastest growing economy in the G7 to the slowest, news which is hardly likely to drive the Pound’s value up further.
We continue to work in a short-term opportunist market and as such, today’s spike was a clear example of how any such opportunities should be grasped with both hands.
If you have an upcoming GBP or CHF currency transfers to make, you can contact me directly on 01494 787 478. We can help guide you through this turbulent market and as a company we have over eighteen years’ experience, in helping our clients achieve the very best exchange rates on any given market.
Our award inning rates can be accessed very easily over the phone and I can keep you posted with key market developments ahead of any prospective exchange you need to make.
Feel free to email me directly on [email protected] to find out all the options available to you ahead of your currency transfer.