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GBP CHF Ahead of Bank of England Meeting (James Lovick)

GBP CHF Ahead of Bank of England Meeting (James Lovick)
August 01
16:40 2017

The pound has seen a small rally against the Swiss Franc with rates trading at just below 1.28 for the GBP CHF pair creating some better opportunities for anyone needing to buy Swiss Francs. The Swiss Franc does remain strong however with all the political uncertainty globally but with particular reference to the US and UK.

The Bank of England meet on Thursday to discuss a potential interest rate rise. At the last meeting there was a 5-3 split in favour of keeping rates on hold and this highlighted a much greater desire for action to be taken by the Monetary Policy Committee. There was a good chance that there may have been a hike on Thursday which had the backing of Governor Mark Carney although weaker inflation numbers in recent weeks appear to have reduced the likeliness of this happening.

The pound still may rally on Thursday though. A high inflation outlook from the inflation report also released on Thursday could warrant a rate hike and if not then any comments from Mark Carney could see the pound move higher. The inflation outlook is the one to watch! Any suggestion of a hike in the next few months would see the market react with a big jump in sterling. My view is that there is a greater chance of sterling strength rather than sterling weakness on Thursday.

Those clients either buying or selling Swiss Francs would be wise to get in touch ahead of Thursdays UK interest rate decision where high volatility is to be expected.

If you would like further information on Swiss Franc exchange rates or any of the major currencies and to discuss how we can assist then please feel free to contact me on 0044 1494 787 478 and ask one of the team for James. Alternatively, I can be emailed directly on jll@currencies.co.uk

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James Lovick

James Lovick

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