GBPCHF rates back to near post Referendum highs!

Pound to Swiss franc forecast - Brexit impasse means a fragile pound

The Swiss Franc is weaker on fading concerns over numerous international events that can make the Franc stronger. Expectations are also linked to the upcoming Swiss National Bank (SNB) interest rate decision tomorrow which could be a market mover. With their interest rate at -0.75% investors will be closely watching the rates to understand just where policy could lead in the future.

The pound is currently looking stronger too which has seen GBPCHF rising, this could all change very quickly owing to a number of events. As a safe haven currency the Franc rises and falls on international sentiments to global risk. Investor attitudes to confidence in the global economy shapes behaviour on the Franc. Essentially when investors are concerned they will increase their holdings of the ‘safe’ Franc which makes it rise. In times of certainty they will sell their holdings and look for profitable returns elsewhere.

The tensions in UK to Russia relations could easily deteriorate which would see a stronger Franc, we also have the potential for the US Trade War that Trump is threatening triggering a flight to safety on the Franc. This could easily manifest in the coming weeks and months as we see both situations potentially escalating.

If you have a transfer to conduct in the future then making plans in advance is wise, in particular on the GBPCHF rate we have the latest EU summit next week which could see volatility on the pound. It might also see some movement on the GBPCHF rates too as markets try to look at the impact of any Brexit progress on the Franc.

Thank you for reading and please speak to me if you would like any updates or information on getting the best rates on the Franc. Please contact me Jonathan Watson on [email protected] to learn more.