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Swiff Franc Reported to be “Highly Valued” (James Lovick)

Swiff Franc Reported to be “Highly Valued” (James Lovick)
November 15
16:52 2017

The Swiss Franc could find itself under considerable pressure all of a sudden after the Swiss government has described the Swiss Franc as highly valued. The comments come at a time when the Swiss Franc has in fact weakened against both the pound and the Euro so it is interesting that the central bank feels it has to say more on the strength of the Franc. GBP CHF is currently sitting at just over 1.30 for the pair which has presented clients looking to buy Swiss Francs with some better opportunities in recent weeks.

Depending on what happens in the Brexit negotiations over the next two weeks it could create considerable volatility for the pound against the Swiss Franc. There is currently a lot of pressure on Theresa May with a reported 40 members of the conservative government who would like to see her go. Another eight signatories could see that become a reality which could see major volatility for the pound across the board including the Swiss Franc.

The Swiss National Bank Chairman Thomas Jordan has highlighted the importance of negative interest rates in Switzerland to prevent the currency appreciating further and his comments highlight how ready the Swiss National Bank are to tackle adverse market movement. It is almost a warning shot to the markets that the SNB hold the keys and can and will introduce measures to control the exchange rate when needed.

Any clients looking to either buy or sell Swiss Francs would be wise to get in touch and look at the options available to take the risk out of the market.

Clients looking to buy Euros with Swiss Francs are beginning to see a depreciation in the Franc largely as result of the tapering programme that has been started by the European Central Bank. With a much brighter outlook in the Eurozone which was reinforced by the stronger EU Gross Domestic Product figures this week the Swiss Franc could continue to weaken against the Swiss Franc especially as the European Central Bank continues with its tapering programme.

If you wish to discuss how these economic data releases and political changes are having a direct impact on the Swiss Franc then please get in touch with myself James and I will be happy to assist. You can email me at jll@currencies.co.uk

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James Lovick

James Lovick

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