The Swiss Franc has found continued support this week after the markets continue to monitor developments from the financial market volatility seen at the beginning of last week which saw US stock markets fall sharply. UK and Asian markets also saw sudden losses as the threat of higher inflation has already become of concern for future economic growth. Higher inflation around the world will squeeze incomes and this is likely to result in lower spending. The Swiss Franc has seen a rise in its value due to its safe haven status and normally performs well in times of global uncertainty.
GBP CHF is currently sitting at 1.30 where there is some support for the pound although any developments in the ongoing Brexit negotiations could see this change quickly. Whilst the Swiss Franc is gaining on the back of global uncertainty the pound is constantly moving on the back of UK economic data and political developments.
German Chancellor Angela Merkel meets UK Prime Minister Theresa May today and press statements today could see a reaction for the pound. A speech from Theresa May tomorrow however is likely to be more revealing in terms of where Brexit is heading and clients looking for an opportunity would be wise to consider moving before the event. Anything positive from the Prime Minister could see the pound rally so clients looking to sell Swiss Francs may wish to move ahead of the key speech.
Clients looking to buy Swiss Francs should monitor developments in the US closely as any signs of a slowdown or change of path on interest rates from new Fed Chair Jerome Powell could see the Swiss Franc react. A hawkish Fed looking to raise interest rates could see the Swiss Franc make further gains.
To discuss the Swiss Franc and how these developments are directly impacting on the currency and your own currency requirement then please get in touch with at [email protected]