The pound has risen back over 1.30 against the Swiss Franc as investors feel a softer Brexit is more likely. The pound has been a large driver on the Franc lately as investors look for clue on Brexit and what might happen next, principally what kind of trade deal the UK will ultimately end up with. The Franc remains historically very strong against the pound but may well weaken further as global events and risk sentiment remove the need for investors to be holding Francs.
The Franc is a safe haven currency which means it will strengthen in times of uncertainty as investors shift funds to take advantage of what they believe will be more favourable exchange rates or security in the future. The Franc is used as a shield from uncertainty globally, currently there is more global confidence but the recent stock market turmoil in the United States is a good example of potential fears that can arise which would see the Franc strengthen.
1.30 is a psychological level for CHF buyers and we are holding above that level which is very positive news for clients interested to buy Francs. Part of this trend is as discussed expectation that the UK will end up with more of a softer Brexit which will mean less disruption to the UK economy. Theresa May will give a speech on Brexit this Friday which will prove very interesting, personally I am doubtful of significant strength for sterling as much of the new is already out in the market.
Nevertheless, this is the big news of the week on GBPCHF so, if you have a transfer to consider then please get in touch with me to discuss the best rates and all your options regarding secure the best and most favourable exchange rates.
Thank you for reading and please contact me Jonathan Watson on [email protected] to learn more or get an update on the currency market for you.