The Pound Swiss Franc (GBP CHF) exchange rate dipped this morning as UK business expressed fresh concerns over the impact Brexit may have on the British economy.
Pound (GBP) Suffers as Brexit Causes Business Confidence to Slump
The Pound continued to suffer this morning following a gloomy survey from the Recruitment and Employment Confederation (REC).
According to data published by REC its index of economic conditions reached its lowest levels this year as a greater number of firms responding to its survey appear to be increasingly pessimistic regarding the UK’s future economic stability.
Businesses seem to be particularly concerned by the impact that Brexit may have on the economy, with many companies refraining from spending money and investing in the face of growing uncertainty.
Also of concern for many companies is that the split from the EU will hamper their ability to recruit talent from across Europe, something many firms see as essential.
REC Chief Executive Kevin Green said;
‘The government must do more to create an environment where businesses have clarity. The jobs market is in a good place but employers will only continue to hire and invest if they feel assured about the future.’
Swiss Franc (CHF) Strengthens Ahead of Jackson Hole Summit
Meanwhile the cooling of tensions between the US and North Korea has seen the Swiss Franc’s recent rise slowed this week as investors sought to profit in markets with higher-yields.
However its status as a safe haven currency has still prompted some traders to buy into the Franc this week as markets await the Jackson Hole central bank summit, with some more nervous investors seeking the safety of CHF in case in case any of the central bank speeches cause any market upsets.
GBP CHF Forecast: Sterling to Slide Following UK GDP Figures?
Looking ahead the GBP CHF exchange rate may slide further tomorrow with the release of the UK’s latest GDP estimate.
While markets currently predict that the UK economy will have grown 0.3% in the second quarter some analysts warn that the revision of June’s retail sales from 0.6% to 0.3% may have a negative impact on the UK’s growth prospects during the three month period.
Meanwhile the Swiss Franc may also be weakened tomorrow by the release of Switzerland’s latest industrial data as economists forecast that both industrial production and orders will have declined again in the second quarter.
Current Interbank Exchange Rates
At the time of writing the GBP CHF exchange rate was trending around 1.2498 and the CHF GBP exchange rate was trending around 0.8057.
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