Will GBPCHF hit 1.40 or 1.30 first?

Pound to Swiss Franc rates: UK housing price growth hits 6 year low

The pound to Swiss Franc rate has traded in a fairly tight range this week as a lack of any new fresh information to drive financial markets so far. A major driver for the Franc has been risk-sentiment as investors attitudes to risk shape the way they look at investing in certain currencies. As a safe-haven investment, the Swissie has been stronger and weaker according to such demands.

Lately, the pound has been very strong helping drive GBPCHF to the post-Referendum highs, now we are seeing a scaling back in the exchange rates as the pound drops lower owing to market concerns. The pound has been boosted by investors believing the Bank of England will raise interest rates in the future but this is by no means a guarantee. Only last week Mark Carney stated a rate hike was not a certainty and more recent economic data has also thrown fresh concerns that perhaps the pound will not just keep rising.

With the pound potentially falling if the Bank of England does not raise in May, the pound to CHF exchange rate could be in for a rocky period. This would be evidenced by the recent falls from 1.39-1.36 and there could be much further to fall. If the market loses hope in the recent unwinding of many safe-haven positions that have seen the CHF weaken, GBPCHF could actually soon be sitting closer to 1.30 than 1.40.

If you are planning any currency transfer buying or selling the Franc against the pound then making sure you have as much information as possible in advance can help to maximise the position. We offer a specialist proactive service to help monitor levels and trade with market news and insight.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk