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GBP CHF Slips Back from 1.33

GBP CHF Slips Back from 1.33
February 01
17:40 2018

GBP CHF exchange rates have found support after what has been a steady week for the pound. Despite choppy trading the pound has been trying to push higher to 1.33 against the Swiss Franc.

The Swiss Franc still remains one of the most overvalued currencies although this is unlikely to change anytime soon. The safety of the Franc is a lure for investors abnd with developments in the US and general global uncertainty the Swiss Franc is likely to remain strong.

UK data is light tomorrow as we end the week so focus will move to UK services sector data from the Purchasing Managers Index. These numbers could be particularly interesting this week especially considering the additional interest in the sector as a result of Brexit. The contentious issue of whether or not UK financial services will be included in any Brexit trade agreement remains a major driver for the price of sterling and any developments in the Brexit negotiations are likely to see considerable market volatility for the pound.

The Bank of England interest rate decision is held on Thursday and any comments from bank of England Governor Mark Carney are likely to see the pound react. He has given reference to Brexit on recent occasions and in my view any such rhetoric could help shape the price of sterling. The markets are looking for some clarity over the likelihood of a trade agreement with the EU and any positive comments from Mark Carney are likely to help strengthen the pound. Inflation remains high in the UK and any increase in the price of sterling may help that current issue.

To discuss how these events and the Brexit are likely to impact on any currency transfers for buying or selling Swiss Francs then please get in touch with me at jll@currencies.co.uk

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James Lovick

James Lovick

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