Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Soften as Greek Situation Stokes Safe-Haven Demand
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate declined by around -0.50% on Tuesday afternoon.
After British economic data produced mixed results, the Pound softened versus most of its currency competitors. Whilst Industrial Production bettered estimates on both an annual and monthly basis, Manufacturing Production failed to meet with expectations in May. Chris Williamson, chief economist at Markit (which produces its own monthly survey of the sector) said: ‘The disappointing trend in the goods-producing sector looks to have persisted into June. The PMI surveys saw the weakest manufacturing output trend for over two years, attributable in part to a faster rate of decline in export orders, which was in turn commonly linked by producers to the strong Pound.’
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.4639.
The Swiss Franc, meanwhile, strengthened versus its major peers in response to the situation in Greece. As a safe-haven asset, the Franc is likely to continue trending higher until more is known about Greece’s future as a member of the currency bloc. The appreciation, as a result of Greek geopolitics, will be unwanted by Swiss National Bank (SNB) officials who have stated that they could cut the negative cash rate further if the ‘Swissie’ (CHF) remains resiliently overvalued. Swiss labour market data met with expectations, with June’s Unemployment Rate hitting 3.1%. This aided the Swiss Franc appreciation during Tuesday’s European session.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending within the range of 1.4654 to 1.4730.
Pound Sterling to Norwegian Krone (GBP/NOK) Exchange Rate Forecast to Strengthen as Norwegian Manufacturing Declines
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate advanced by around 0.70% on Tuesday afternoon.
The NIESR Gross Domestic Product Estimate, due for publication later on Tuesday afternoon, has the potential to provoke changes for the Pound. With the Bank of England (BoE) interest rate decision due on Thursday, rate hawks will be hoping to see a higher-than-anticipated GDP estimate. Most economists, however, don’t expect the BoE to hike the cash rate at this juncture with mounting unknowns in Europe and uncertainty about the impact of a Grexit on the UK.
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate was trending in the region of 12.6955.
The Krone, meanwhile, softened versus its major rivals despite better-than-expected manufacturing output. The depreciation is the result of Manufacturing Production cooling by -2.6% on the year in May. Activity in Norway’s manufacturing sector declined for the fifth consecutive month, led by a steep fall in orders.
The Pound Sterling to Norwegian Krone (GBP/NOK) exchange rate was trending within the range of 12.5916 to 12.7349.
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