GBP/CHF forecast: The outlook for the Swiss economy was cut just yesterday after it was reported that the economic output for the 3rd quarter of this year showed a contraction.
Gross Domestic Product figures, which measure a country’s economic output have now been cut for this year as well as next year which has softened the Swiss Franc only slightly so far. The economic growth has been hit by a stronger CHF which has lowered exports and the construction sector has also slowed down.
Growth expectations for next year have dropped to 1.5% whereas the figure was previously 2%. In the first half of this year the country showed strong growth and this has materialised in the Swiss Franc’s value which is now close to highest levels of the past 25 years against the Pound for example.
Those of our readers planning on making a currency exchange involving the Swiss Franc should be aware of how strong the Swiss Franc is from a historical perspective, as there haven’t been many better times to make some CHF transfers.
In the UK there are some key data releases this week although I do expect to see Brexit updates continue to be the main driver of currency value changes. There is likely to be a recess period for the Government over the festive season but I think the 14th of January could be a very busy day for the Pound as the vote on UK Prime Minister, Theresa May’s Brexit plan will take place. Should she lose the vote by a dramatic amount, which was her fear before cancelling the previous vote, I think we could see the Pound sold off quite heavily.
If you wish to be updated in the event of a major market movement, do feel free to register your interest with me. There are now around 100 days until the due date for Brexit so we’re expecting to see some swings in the GBP/CHF rate during this time.
To discuss the factors impacting GBP/CHF exchange rates in the near future you can use the form below to ask me a question, I will be happy to get in touch personally to discuss your query.
