This morning the Swiss National Bank have left interest rates on hold at 0.75%, and market reaction between GBP/CHF has been limited. The Swiss Franc has rallied slightly against the US dollar and the Euro as forecasters were suggesting the SNB could cut interest rates further, however the events last night in the UK I believe outweighs the interest rate decision in Switzerland.
GBP/CHF rates: Pound rallies against Swiss Franc
The pound is rallying against the Swiss Franc as Prime Minister Theresa May managed to overcome a vote of no confidence. 317 Tory MPs took to the secret ballot and 117 voted against her which meant 200 voted in her favour given her a clear majority of 83. However to get the backing from MPs she did tell the Party in a private meeting that she will not stand at the next election.
It’s not all smiles for the Prime Minister as MPs such as Jacob Rees-Mogg shortly after the announcement of the vote told the press that this result is a loss for the Prime Minister and when over a third of the Party does not back her then she should resign.
A wounded Prime Minister will now travel to Brussels to the EU summit in a bid for further concessions from the EU and the main talking point is the Irish backstop. Arlene Foster the leader of the DUP has told Mrs May that they are seeking a legal text not assurances and promises and this seems to be the main sticking point as the EU are not prepared to offer a legal document that may need to be changed in the years to come.
This week could be crucial in regards to the future of Theresa May’s tenure. If it’s the case she fails to receive any further concessions or a legal text outlining the backstop then I expect her days are numbered and therefore the rally we are seeing at present is a spike in the market that should be taken advantage of if you are purchasing Swiss Francs with sterling.
If you have plans for a GBP/CHF transfer, I would strongly recommend getting in touch to discuss your position. You can send me a message directly using the form below and I will respond to you personally: