The Pound has risen against most currencies including the Swiss Franc as investors warm to comments from the EU’s chief negotiator Michel Barnier, who has indicated a deal could be a possibility in the coming weeks. Details are slim but this another example of the positivity that has been helping the pound to find form of late.
GBPCHF is currently trading at 1.2740, some of the best rates in nearly a month for Swiss Franc buyers with Sterling. This week is a vital one for the GBPCHF exchange rate as we receive the latest news on UK interest rates and monetary policy from the Bank of England.
Overall there is an expectation that the UK will raise interest rates again in the future, the key question is when. Mark Carney and his team might provide some insight, it will also be interesting what they feel regarding the recent improvements in the mood on the Brexit. Could Michel Barnier’s olive branch have led to an increased chance of future interest rate hikes for the UK?
The Swiss Franc is a safe haven currency that will strengthen in times of uncertainty and weaken in times of optimism. I have previously referred to the GBPCHF pair as the ‘Brexit Barometer’ since its safe haven status and closeness to Europe makes it a good indicator of the general mood on Brexit.
Overall, we now believe that there are more signs of optimism for the future on Brexit, this could see GBPCHF rise to 1.30 and higher in the coming weeks. Look out for the SNB (Swiss National Bank) Interest Rate decision next week on the 20th as well, this could prove interesting as a guide for future Swiss economic policy.
If you have a transfer to make buying or selling Francs against the Pound, please do not hesitate to get in touch. You can send me a message using the form below.