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Swiss Franc remains strong (Dayle Littlejohn)

Swiss Franc remains strong (Dayle Littlejohn)
June 27
17:00 2017

In the past many of my clients that are not experienced within the currency markets have asked why the Swiss Franc is incredibly strong against all of the major currencies when interest rates are currently in minus territory (-0.75%). Higher interest rates tend to strengthen the currency as investors can receive higher interest on their assets.

Switzerland is known as a safe haven currency which means international investors want to leave their assets (normal large amounts) within the country as they believe the value will not depreciate, even thought Banks essentially charge their clients to hold their money.

The currency company I work for is based in the UK therefore I assist lots of clients that are trading GBPCHF or CHFGBP. Looking further ahead I expect the fantastic rates for buying GBP will continue and clients purchasing CHF with GBP to continue to struggle on.

The pound is under severe pressure at present due to Theresa May not winning the General election by a majority and Brexit negotiations that started over 7 days ago. Theresa May’s government should be approved by the end of the week which could lead to a period of sterling strength, however I wouldn’t be surprised to see further pressure mount on the Prime Minister for her resignation in the upcoming months which you would think would lead to further sterling weakness.

As for Brexit negotiations it is very difficult to predict when a deal will be struck or if a deal will be struck. However this story has the potential to have a substantial impact on exchange rates therefore receiving regular updates when converting pounds and Swiss franc’s will help you to achieve better rates which will in turn make you a saving.

If you are buying or selling CHF this year, I can give you economic information to help you time your transfer and can also offer you a better exchange rate than what you would receive with your bank and other brokerages.  My direct email is drl@currencies.co.uk Dayle Littlejohn. Alternatively call me Monday morning on 0044 1494 787 478 and ask to be put through to Dayle Littlejohn.

If you are already using a brokerage I recommend emailing me with the exact figures and I will give you our live price so you can make a comparison. This will take you 2 minutes but could save you a considerable amount of money.

 

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Dayle Littlejohn

Dayle Littlejohn

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