The Swiss Franc has been strengthening against sterling as fears over Italy, which had previously been causing the Franc to weaken look like they might be resolved. Talk of a coalition meeting again to resolve the current problems have seen the Euro strengthen which has helped the Franc too. With a deep relationship between the Franc and the Euro, these currencies can closely track either which causes movement on GBPCHF.
I think that any further major uncertainty over what is happening could see the Franc stronger against the pound and could easily push us lower, perhaps to break 1.30. Especially with the pound being much weaker lately, there is lots to consider in the future which could drop the rate lower. Political uncertainty in the Eurozone is a major concern which can see the Swiss Franc rise in value.
The Franc is a safe haven currency which means in times of uncertainty it will rise in value as investors increase their share of the currency to mitigate against any uncertainty elsewhere. This means that any cooling of relationships and uncertainty might see the Franc soften as investors look for reasons to invest elsewhere and sell of their holdings of Francs.
Overall there are plenty of reasons to be cautious about the future and what lies ahead. If you are considering any currency transaction buying or selling Francs against any currency, including Euros, pounds and US dollars, there are important points to be made aware of which will affect the future value of any transfer.
Thank you for reading and if you wish to learn more about what is driving your exchange rates, please contact me Jonathan Watson on email@example.com to learn more.