Movement for the Pound to Swiss Franc pair limited
Pound to Swiss franc exchange rates have remained relatively rangebound this week, despite yesterday’s political developments inside the UK. Whilst the GBP/CHF pair is historically less volatile than GBP/EUR for an example, a range of only two cents movement over the past month is testament to the current market uncertainty.
GBP has hit a high of 1.2457, whilst trading at a low of 1.2252 within this time frame. This has meant that those clients looking to sell pounds to buy Swiss francs have had limited opportunities to see an increase in value, with external uncertainties surrounding the UK’s political structure and continued uncertainty over Brexit unlikely to have helped drive investors’ confidence in the pound.
How has Boris’ appointment as the next UK Prime Minister affected Pound to Swiss Franc exchange rates?
Whilst yesterday’s anticipated announcement that Boris Johnson was now set to take up the reigns in number 10, investors have yet to react, with GBP/CHF rates remaining particularly docile throughout Tuesday’s trading.
What Boris Johnson’s appointment as the new UK Prime minister will do for the pound in the longer-term is yet to be understood, but it would seem investors are remaining somewhat sceptical for the time being. With the upcoming political summer recess in August just around the corner, it may be that we do get a real sense of Johnson’s economic mandate and Brexit strategy until politicians return in September.
The CHF itself has seen its value hold firm over recent months in line with this uncertainty surrounding Brexit, whilst also benefitting from its historical status as a safe haven currency for investors. The current global economic downturn has in the past benefitted ‘safe haven’ currencies like the CHF & USD, which generally hold their value better than other currencies in time of a global economic slowdown.
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