The Pound has fallen to its lowest level to buy Swiss Francs in two months as the Pound continues to struggle after the Bank of England’s decision to keep interest rates on hold for the foreseeable future.
About a month ago the Swiss Franc started coming under pressure against a number of different currencies after the Swiss National Bank got rid of the cap that it had previously put in place to stop the CHF from being too strong.
Many expected that the Swiss Franc may have weakened against a number of currencies but in the end it actually strengthened against the Euro by over 2% and has been improving steadily since then against the Pound as well.
The Swiss Franc has also strengthened owing to the uncertainty caused by what is happening in Italy at the moment with the new coalition government in Italy between the Five Star Movement and the Lega Party both who have suggested that they may want to leave the EU at some point.
Generally speaking the Swiss Franc is used as a safe haven currency so whilst there is political unrest in Italy this will often help to strengthen the Swiss Franc and that is what appears to be happening at the moment.
This morning the UK will announce its latest set of Retail Sales data and after struggling with the previous release with the bad weather also known as the ‘beast of the east’ if we see a positive release this time round this could help to increase the value of Sterling vs the Swiss Franc.
If you would like further information about what is happening with the Pound vs the Swiss Franc or if you’d like a free quote to buy or sell Swiss Francs then contact me directly and I look forward to hearing from you.
Tom Holian [email protected]