Where next for CHF? (Daniel Johnson)

Where next for CHF? (Daniel Johnson)
January 17
14:31 2018

GBP/CHF – I would expect Sterling to come under pressure to wards the end of the month when Phase two of Brexit talks commence towards the end of the month. The UK and Brussels are at logger heads befor the talks even commence. Brexit secretary, David Davis is not happy, EU services have been advising UK based companies to consider relocating or risk losing contracts.

Davis also stated “he will not allow Brussels to cherry pick terms of the deal.”

This will be the most important phase of talks as it will looking at trade deals. There is a target of October to have everything signed off. I am of the opinion however the target is unrealistic and I am confident there will be an extension. Short to medium term I think Sterling could suffer against CHF.

EUR/CHF – There are some events due that could seriously effect Euro value.  Brexit negotiations, the Italian elections and QE tapering. The Swiss National Bank (SNB) abandoned it’s exchange rate cap with the Euro at 1.20 in 2015 due to the heavy falls in Euro value. Since this event the SNB have invested in a significant amount of foreign assets in order to restrain the strength of the Swiss Franc. When purchasing foreign assets the SNB sells CHF, thus increasing supply and weakening it’s value.

The SNB are now in possession of assets in excess of CHF 800bn, 43% more than before the CHF-EUR rate cap ended. It seems the SNB are doing a very good job of controlling the value of it’s currency and keeping levels stable. I am going against the grain an I think CHF will gain value against the Euro in the coming months.

If you have a currency requirement I will be happy to assist. It is crucial to be in touch with an experienced broker when the market is currently so hard to predict. If you let me know the details of your trade I will endeavour to produce a free trading strategy to suit your individual needs. Have faith knowing you will be dealing with a brokerage in business for over 16yrs, Foreign Currency Direct Plc. We are a no risk entity as we do not speculate on the market and we are registered with the FCA. If you have a currency provider take a minute to send over the rates they offer and I am confident I can demonstrate a significant saving. I can be contacted at . (Daniel Johnson) Thank you for reading.


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