GBPCHF at best rates since Referendum! What can we expect next on GBPCHF?

GBPCHF at best rates since Referendum! What can we expect next on GBPCHF?
December 19
18:11 2017

The pound has risen against the Swiss Franc as we get closer to understanding just what Brexit means for the UK and global concerns ease, weakening the Franc. The pound is essentially a barometer of progress on Brexit whilst the Swissie is effectively a barometer of global attitudes to risk. At present, a weaker Franc and stronger pound is presenting a good opportunity for CHF buyers, will this last?

The Franc looks likely to remain on the weaker side and it would not be wholly surprising to see the Franc weaken further as global attitudes to risk subside further as investor concerns over problems in the global economy subside. The UK is not coming out of Brexit too badly, the political concerns in Europe we worried about 12 months ago have not materialised and Donald Trump and North Korean have not launched a nuclear war on each other just yet.

The fact these concerns have failed to materialise means the CHF is a little weaker, 2018 could easily see them resurface. The Spanish election in the Catalonian region on Thursday and the Italian election in March 2018 could also present uncertainty that would make the Franc attractive to safe-haven investors.

Sterling looks like it will, on the whole, perform slightly better as markets expect the UK will now find agreement with the EU on a trade deal. Whilst no one knows exactly how this will look now and more than likely sentiments will shift, there are now more reasons to be confident in a deal. The progress made with this latest EU Summit is a good reason to be confident for the future.

GBPCHF could rise higher in the New Year as sterling improves and global confidence grows. Just be conscious of the behaviour of the Franc which could easily see your best-laid plans quickly derailed. If you have a transfer involving the Franc and the pound be sure to highlight your situation to me and I can help with news, updates and strategy to help maximise the position.

Merry Christmas, thank you for reading and I look forward to hearing from you.

Jonathan Watson


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Jonathan Watson

Jonathan Watson

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