Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate softer on Ukraine concerns

Pound to Swiss Franc exchange rate chart

The Pound softened against the Swiss Franc on Wednesday as positive Swiss employment data and concerns over the situation in Ukraine bolstered the currency.

Data released by the State Secretariat for Economic Affairs showed that the Swiss unemployment rate remained unchanged at 3.2% for an 11th consecutive month in April. The data was better than a rise to 3.4% forecast by some economists but was largely in line with most predictions.

Also adding support to the safe-haven Swiss Franc is the escalating situation in Ukraine. Clashes between Ukrainian government forces and pro-Russian separatists resulted in a number of deaths i the east of the country.

Four Ukrainian soldiers were killed during the confrontation. Rebels also reportedly shot down a helicopter, the third to have been felled in the past three days.

Comments made by various politicians did little to ease tensions. French President Francois Hollande warned that “chaos and the risk of civil war” is looming in Ukraine. The German foreign minister Frank-Walter Steinmeier said that “we are not far from a military confrontation.”

NATO has reinforced Eastern Europe and with Russian troops amassed on Ukraine’s border concerns over a wider military confrontation remain high.

The Swiss Franc also found support ahead of this afternoon’s testimony by Federal Reserve Chairman Janet Yellen. The Central Bank head is due to deliver a report to congress on the state of the US economy. Investors are wary following the recent run of mixed economic data coming out of the world’s largest economy.

The currency found little support however from the Swiss Central Banks announcement that its foreign currency reserves increased in April.

The Bank said that it now holds 438.949 billion Swiss Francs in foreign currency, a rise from the 437.935 reported in March suggesting that the SNP has not been buying Euros to defend its 1.20 Francs per Euro minimum exchange rate floor.

If the situation deteriorates further in Ukraine we can expect the Swiss Franc to continue to be supported from investors seeking safer havens.

Current Swiss Franc (CHF) Exchange Rates