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Pound falls from recent highs vs the Swiss Franc (Tom Holian)

Pound falls from recent highs vs the Swiss Franc (Tom Holian)
May 16
16:53 2017

The Pound vs the Swiss Franc exchange rate has fallen over the last few days after the recent UK Quarterly Inflation Report published last Thursday. Bank of England governor Mark Carney announced a cut in the UK’s growth forecast and this caused the first stumbling block for Sterling after its recent rally to 1.30 vs the Swiss Franc.

UK inflation reports this morning showed higher than expected levels and typically this can result in Sterling strength but on this occasion this has caused the Pound to suffer vs all major currencies including the Swiss Franc.

The problem is that usually a central bank will look to increase interest rates in an attempt to combat rising inflation but as the Bank of England has been using Quantitative Easing in recent times the chance of an interest rate hike coming in my opinion will not be coming anytime soon.

UK unemployment data combined with UK Average Earnings data is due out tomorrow morning and although unemployment is close to its lowest level in years the real problem for the UK has been caused by a fall in average earnings.

Essentially this means that although there are more people in work their disposable income is lower which is detrimental to the British economy and this has resulted in a fall in the Pound’s value against the Swiss Franc.

Tomorrow is likely to be in the short term for the Pound’s performance in the short term vs the Swiss Franc.

Having worked in the foreign exchange industry for one of the UK’s leading currency brokers since 2003 I am confident of not only being able to offer you bank beating exchange rates but also help you with the timing of your transfer.

If you would like further information or a free quote when buying or selling Swiss Francs then contact me directly and I look forward to hearing form you.

Tom Holian teh@currencies.co.uk

 

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Tom Holian

Tom Holian

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