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Will the pound rise further against the Franc? Will North Korea spring back to life?

Will the pound rise further against the Franc? Will North Korea spring back to life?
October 06
15:58 2017

The pound to Swiss Franc rate has been rather volatile lately for all number of reasons, namely the movements on sterling relating to the prospect of UK interest rate hikes. A huge driver on the Franc which is a safe haven currency has been the North Korean situation which has seen the pound lose ground against the Franc as investors pore into the Swissie. Basically as tensions escalate on the North Korean rhetoric the Franc has strengthened as markets pile into the haven currency.

There are various types of currency types and safe haven currencies will strengthen in terms of global uncertainty. Markets will pursue currencies like the Franc which is seen as a stable reliable investment in times of uncertainty elsewhere. The pound to Franc rate did rise a little as North Korean tensions retreated and the pound was backed owing to the prospect of a UK rate hike.

Overall the likelihood of the pound rising against the Franc seems limited, in fact I would personally see the pound losing ground as expectations on the UK to raise rates diminish. There were also reports today citing Russian sources that North Korea would test another missile this weekend. Any increase in the uncertainty and the possibility of nuclear war will see the Franc stronger.

If you need to make a transfer buying or selling the Franc in the future then understanding the market and what drives your rate in advance is recommended. For more information at no cost or obligation please speak to me Jonathan by emailing jmw@currencies.co.uk.

Thank you for reading and I look forward to hearing from you.

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Jonathan Watson

Jonathan Watson

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