GBP CHF Breaks 1.33 on Brighter Brexit Outlook

GBP CHF Breaks 1.33 on Brighter Brexit Outlook
November 30
17:34 2017

The Swiss Franc remains strong as it retains its lure as a safe haven currency. However a member of the Swiss National Bank (SNB) Fritz Zurbruegg said yesterday that the central bank remains ready to intervene to curb upward pressure on the Swiss Franc in a bid to artificially weaken the Franc.

The SNB has had to intervene in the past which has created immense market volatility for Swiss Franc exchange rates and the central bank appears to be warning the markets that there could be more to come. Clients looking to buy or sell Swiss Francs could see considerable volatility in the coming weeks and months on the back of any intervention. For those clients looking to buy Swiss Francs with sterling there is currently a much better buy opportunity with some of the highest levels available since the Brexit vote for Britain to leave the European Union.

GBP CHF broke 1.33 earlier today for this pair after what has been a positive turnaround for sterling exchange rates. The pound has strengthened considerably this week after it was reported that there is substantial progress for the divorce settlement in the Brexit negotiations. The EU summit mid December is the next key date in the diary as it will then be decided whether or not sufficient progress has been made for the Brexit talk to move on to trade.

With ongoing developments with missiles in North Korea there is still a chance of a war on the Korean peninsula and although the markets are not expecting this outcome imminently there could be a sudden change which could force the SNB to intervene.

Economic data is light on Friday so eyes look forward to Consumer Price Index inflation data next Wednesday which could see a shift in rates.
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James Lovick

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