Pound falls against the Swiss Franc after MPC member comments (Tom Holian)

Pound falls against the Swiss Franc after MPC member comments (Tom Holian)
July 12
08:18 2017

The Pound has fallen vs the Swiss Franc after two of the members of the Monetary Policy Committee spoke yesterday.

Ben Broadbent has stated that he’s ‘not ready’ to raise interest rates just yet and after the 5-3 split in the announcement earlier this month the markets were expecting both him and Andy Haldane to be hawkish in their tone.

The reverse happened and combined with Kristin Forbes who has left since the vote and voted for a rate hike the appetite for a rate hike looks to be diminishing very fast.

This news has caused the Pound to fall to its lowest level in a month to buy Swiss Francs and I think we’ve got further falls ahead for GBPCHF exchange rates coming.

Later this morning UK unemployment is set for release and although we are close to the lowest level since the 1970s the real issue for the UK economy is that Average Earnings which are not keeping up with inflation.

Inflation levels are currently at 2.9% with Average Earnings set to hit 1.9% so the disparity between the two figures is causing concern for the British economy.

Effectively it means wages are not keeping up with inflation which means the cost of living is going up which is not a good sign and therefore this is being reflected in the value of the Pound against all major currencies including vs the Swiss Franc.

Indeed, the Pound is now at its lowest level vs the Euro since November last year. With the Swiss Franc often used as a safe haven currency this is another reason why the Swiss Franc has been strengthening vs the Pound over the last few weeks.

If you have a currency transfer to make and would like to save money when transferring Swiss Franc then contact me directly for a free quote and I look forward to hearing from you.

Tom Holian


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Tom Holian

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