The Swiss Franc has come under another wave of pressure with a devaluation through this week. Rates for GBP CHF have now climbed to 1.35 this afternoon presenting those clients looking to buy Swiss Francs with some of the best opportunities to purchase since the Brexit vote for Britain to withdraw from the EU. A member of the Swiss National Bank Andrea Maechler was recently reported saying that “The pressure on the Swiss Franc is still there, the currency has devalued and the over valuation has reduced, but the franc is still a safe haven.”
Despite the weaker services data from the UK from yesterday and the disappoint construction data earlier in the week the markets have largely shrugged off the data on the general consensus that the cold weather last month dubbed the Beast from the East.
Those clients with pending requirements looking to either buy or sell Swiss Francs should pay close attention to the ongoing Brexit negotiations as there are a number of issues which are likely to dictate the direction of travel for the GBP CHF pair. Although negotiations have moved to the third round of negotiations after the transitional deal was agreed last month there is still some way to go before any final agreement is signed off on. The two major issues that need to be resolved are the Irish border and also whether financial services can be included in a future free trade agreement. The EU has stated that it is not possible for Britain to have a trade deal that encompasses financial services. The responses from Britain is that is the deal does not include financial services then there will not be a trade deal at all. The different outlooks do present the possibility of a no deal scenario and so any developments here could create substantial volatility for GBP CHF rates of exchange.
For more information on the Swiss Franc and assistance on making transfers either buying or selling Swiss Francs then please contact me at firstname.lastname@example.org