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GBP CHF Supported on Transitional Brexit Deal

GBP CHF Supported on Transitional Brexit Deal
March 28
16:52 2018

The pound has proven extremely resilient against the Swiss Franc with rates for the GBP CHF pair now sitting at 1.3450. GBP CHF has been given a considerable boost after the transitional agreement was reached last week between Britain and the EU which has helped support the pound considerably. The transitional deal gives Britain access to the single market for another 18 months which should prevent what has been described as a cliff edge Brexit.

There are currently some much better opportunities to buy Swiss Francs although these levels may not last indefinitely. The ongoing issues surrounding Brexit which include the Irish border and financial services are yet to be resolved and could see material weakness for the pound going forward. These coming months are likely to see major volatility for GBP CHF as Brexit developments unfold.

UK Gross Domestic Product numbers released tomorrow morning could see the pound react on the back of the data. Expectations is for a small pick up in growth from 1.4% to 1.5% which could help lend support to the pound although anything higher than these levels seems unlikely at this time. As such any gains seen are likely to be limited and short lived with the ongoing Brexit discussions.

The Swiss Franc could find itself in a period of strength should there be further trade tariffs imposed by the US. Sop far we have already seen tariffs imposed on imported steel and aluminium which has been extended to cover some manufactured goods as well. Another round of trade tariffs could see the Swiss Franc rally if fears arise over the prospect of a global trade war.
More volatility could also be seen from events in North Korea with the country’s leader meeting with the Chinese President whist a meeting is expected to include US President Donald Trump in the coming months.

For more information on the Swiss Franc and how we can assist with any transfers either 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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