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Will GBPCHF rise or fall in October?

Will GBPCHF rise or fall in October?
September 28
17:21 2017

The GBPCHF rate has been rising steadily as the pound strengthens and the Euro weakens too, which loosely influences the Franc. The Franc has relatively speaking been stronger against the Euro and pound owing to the North Korean tensions which keep threatening to rise. Thankfully the tensions do keep settling back down and this weakens the Franc but ultimately this could be a major source of volatility for the Franc.

As a safe haven currency the Swiss Franc will strengthen in times of economic, political and global uncertainty. The latest North Korean tensions are a great example of such uncertainty and it is this that has continually seen the Franc snap back against the pound in the last few weeks and months. The pound is on the charge because of UK interest rate expectations but these could very easily fail to materialise and we could actually see the pound drop lower still.

The Franc has a loose relationship with the Euro not only geographically but because what is happening good or bad to the Eurozone will also have a degree of influence over events in Switzerland. The Swiss National Bank too did have a loose system of ‘pegging’ the Franc to the Euro in 2011. This basically meant if the Franc was strengthening against the Euro too much (below 1.20) the SNB would intervene to weaken the currency. This further highlights the relationship between the currency of the Euro and Franc.

Movement on the Franc in October can therefore be related North Korea and events on the pound and the Euro. I would expect a real move below 1.30 once again so if you need to buy Francs moving sooner is probably best. For more information at no cost or obligation please speak to me Jonathan Watson by emailing jmw@currencies.co.uk.

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Jonathan Watson

Jonathan Watson

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