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What’s behind the CHF weakness, and will it continue?

What’s behind the CHF weakness, and will it continue?
May 08
17:00 2018

The Swiss Franc has been one of the biggest losers during today’s trading session, leading losses out of the G7 countries and there retrospective currencies.

Despite there bring a lot of political uncertainty out there the Swiss Franc isn’t benefiting which I think is a negative sign moving forward. There are the obvious concerns surrounding the UK’s Brexit and how amending the current business conditions could impact the economy of the UK and the Eurozone negatively.

At the same time and also more recently, political uncertainty surrounding the Italian government is beginning to cause a stir and this has caused the Italian stock markets to sell-off. There hasn’t been a major impact to the CHF’s value off the back of this, which leads me to think that global markets are beginning to adopt a more bullish outlook which doesn’t benefit the Swiss Franc.

CHF offers one of the lowest rate of interest in the world, with some business actually paying to hold funds on deposit due to the negative interest rates.

As the likes of the US Fed Reserve have begun hiking rates CHF is losing attractiveness, and I also think that concerns of a another financial crises have subsided somewhat which is another reason for the weakening Swiss Franc.

There is a lack of data out of Switzerland this week, so I expect the rates to continue to be driven by sentiment.

If you have a large currency exchange to carry out in the coming days, weeks or months then you are more than welcome to speak with me directly as I will be more than happy to help you both with trying to time a transaction and getting you the top market rate when you do come to buy your currency. A small improvement in a rate of exchange can make a huge difference so for the sake of taking two minutes to email me you may find you save yourself hundreds if not thousands of Pounds. You can email me (Joseph Wright) on jxw@currencies.co.uk and I will endeavour to get back to you as soon as I can.

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Joseph Wright

Joseph Wright

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