Rates for GBP CHF has slipped in recent week with levels hovering around the 1.32 mark for the pair. The Swiss Franc has been marginally boosted following the latest Consumer Price Index inflation numbers released this morning. Swiss inflation climbed higher to 1% for the year which was above the expected forecast of just 0.9% and the numbers were up to 0.4% for the month of May.
The markets will be keeping a close eye on what happens in Iran in these coming weeks after US president Donald Trump pulled out of the Iran nuclear deal. Any escalation in geopolitical tensions or a sharp rise in the price of oil could help to see the Swiss Franc make further gains as investors flock to the safety of the Franc. The Swiss Franc as a save haven currency generally performs very well in time of global uncertainty in much the same way as gold is attractive to investors
Clients with an exposure to the pound should pay close attention to all the developments from the House of Commons next Tuesday when the Brexit withdrawal bill will be voted on. There are many different outcomes from these votes and each will have a direct impact on the price of sterling. If for example Prime Minister Theresa May is defeated in the Commons over these 15 amendments from the House of Lords then it could open up the possibility of a general election. The other side to this is that if she is able to push through her vision of Brexit then this could create stability and could permit a clearer direction as to where the negotiations are heading. This in my view would be beneficial for the pound as the markets are seeking clarity at this time. Clients looking to buy Swiss Francs could find themselves in a better position if progress is made.
For more information on Swiss Franc exchange rates and how to make the most of any opportunities when making transfers then please get in touch with me at [email protected]