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Will Sterlings gains against the Swiss Franc be limited due to geopolitical issues boosting CHF? (Joseph Wright)

Will Sterlings gains against the Swiss Franc be limited due to geopolitical issues boosting CHF? (Joseph Wright)
April 13
08:18 2017

The Pound has been on a strong run against the Swiss Franc in recent weeks, and over the past month alone Sterling is up by 2.66% against the Swiss Franc.

Personally I think the Pound could have strengthened even further against CHF had issues around the world not limited demand for riskier assets.

Due to the Swiss Franc benefiting in times of political uncertainty the Swiss Franc has been in demand recently along with the Japanese Yen. The tension between the US and Russia over the Syria crises has caused Russian President, Vladimir Putin to state that relations between the two countries are now worse since President Trump came into power.

The Pound has been performing well since the Brexit begun and the currency is currently trading around the upper levels of its current trend against most major currency pairs. With inflation levels within the UK rising there’s a chance the Bank of England could raise interest rates which would likely push the pound up further.

Should geopolitical issues subside I’m expecting to see the CHF lose some ground, especially since over the past the year the Swiss Franc has strengthened considerably.

If you are planning to make a currency exchange involving the Pound and another foreign currency, it’s well worth your time getting in contact with me on jxw@currencies.co.uk in order to ensure you make a well informed decision on when to make that particular transfer, as well as benefiting from highly competitive exchange rates from one of the UK’s leading foreign currency brokerages. Just provide me with a basic outline of your currency requirement and I will be back in touch with you as soon as possible.

 

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Joseph Wright

Joseph Wright

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