Yesterday, we saw the pound to Swiss franc interbank exchange rate range between a high of 1.2118 and a low of 1.2059.
Gilead Sciences have announced that they may have made an antiviral medicine to treat COVID-19, which gave confidence and much needed support to the global markets. According to a medical news website STAT, patients on clinical trials have seen people affected with the Coronavirus are released within a week. If it approved by the Food and Drug Administration in the United States, it could be the first successful treatment against the Coronavirus.
Brexit Back in the Picture, Ccause of Pound Weakness?
Brexit is back in the spotlight. The deadline for the UK and European Union to agree on an extension transition period is not a long way off at the end of June, raising concerns there is not enough time to make sufficient progress. However, the UK is still set to stick to the transition ending at the end of this year. “As we prepare for the next rounds of negotiations, I want to reiterate the Government’s position on the transition period created following our withdrawal from the EU. Transition ends on 31 December this year. We will not ask to extend it. If the EU asks, we will say no,” said David Frost, the UK’s chief negotiator on Thursday.
Switzerland Easing Restriction on Lockdown in 3 Stages
Since their lockdown, Switzerland has decided to gradually ease measures against the Coronavirus in 3 phases depending on whether there are any increases in the number of cases seen going forward. From the 27th April, hospitals will be able to deal with all medical procedures. Hairdressers, massage practices and cosmetic salons along with DIY stores, garden centres and florists will be allowed to open.
From the 11th May, early year schools, shops and markets will be allowed to open. From 8th June, upper secondary schools and higher education institutions will resume face to face schooling. Entertainment and leisure establishments may reopen, and restrictions on gatherings could be relaxed.
The Swiss economy is likely to suffer a recession like many other countries, with unemployment expected to increase and growth expected to fall. In order to avoid an excessive appreciation of the Swiss franc, the Swiss National Bank has been intervening in the foreign exchange markets so as not to make their currency too expensive and hamper exports.
<strong>With this in mind, we could see the GBP CHF forecast come in lower as the pound comes under Brexit pressure and the Swiss franc holds steady with the help the of the Swiss National Bank. If you have a requirement to buy or sell Swiss francs and would like to discuss these factors in more detail, get in touch by using the form below.</strong>
If you’d like to discuss these factors and how they could impact your currency exchange, you can reach me directly using the form below.