What will move Swiss Franc exchange rates?

GBP to CHF remains buoyant at higher levels over the week

The Swiss Franc is always susceptible to global attitudes to risk, as a safe haven currency it will rise and fall in value according to global sentiments on risk. When the market is fearful the Franc will strengthen when investors are confident in the global economic outlook it will weaken as investors look for more profitable shores elsewhere.

The main talking point is at present is the latest news on Iran and the nuclear deal which Trump has now rejected. This has triggered lots of volatility on the Franc which has risen and fallen by a cent today as markets continue to digest the latest news and sentiments. The initial fear this morning and overnight has gently subsided hence the Franc now being slightly weaker than when we started the day.

A big driver will be the continued fallout from this ever-changing story as markets embrace further news and await more information on any possible negative outcomes. For example, some say this deal will push Iran further away from the international community and remove what dialogue and cooperation previously existed. This will make it much harder to ascertain what kind of nuclear weapons capability they are progressing too, which in turn, will increase the threat to global security.  This could easily see the Franc stronger in the future and clients looking to buy or sell Francs should be conscious of these important global issues and their influence on exchange rates.

Against sterling tomorrow will be a key date for GBPCHF rates with the latest Bank of England interest rate decision commentary and outlook, this would potentially see the pound stronger if the BoE are positive but there is now an increased chance of the meeting failing to meet the previously high expectations set, and ultimately, seeing the pound lower.

For more information at no cost or obligation please speak to me Jonathan Watson by emailing [email protected].

Thank you for reading and I look forward to discussing your potential transfers and strategies soon.