Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Recovers Today
Ahead of this morning’s UK Production data the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate has been making gains in the region of 1.4189. The strength of the Franc (CHF) has faltered after Tuesday’s rally, although the Pound (GBP) could return to a downtrend if the day’s data proves disappointing.
Earlier…
Stronger Swiss data has seen the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate softened today as the appeal of the Pound (GBP) remains muted by the ongoing ‘Brexit’ debate.
‘Brexit’ Worries Continue Weighing on Pound Sterling (GBP) Exchange Rate
Despite a lack of UK data to provide support for the Pound (GBP) on Monday the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate nevertheless continued to trend higher. While ‘Brexit’ worries are continuing to overshadow the Pound a general decrease in safe-haven demand saw the Franc (CHF) retreat against rivals. As both the Swiss Foreign Currency Reserves and Domestic Sight Deposits were found to have narrowed, the appeal of the Franc was further limited, allowing the GBP/CHF pairing to climb to a two-week high of 1.4210.
Swiss Franc (CHF) Trends Higher as Unemployment Rate and CPI Better Forecasts
Demand for the Pound fell back once again in the wake of this morning’s BRC Like-For-Like Sales report, which showed a substantial slowing in growth from 2.6% to 0.1% on the year in February. Indicating that consumer sentiment had weakened significantly, this soft figure does not offer any great encouragement concerning the robustness of the UK economy. As the uncertainty of a potential ‘Brexit’ is set to weigh increasingly on domestic confidence over the coming months it seems unlikely that this trend will see a significant reversal, prompting fresh Sterling weakness.
Worrying trade data from China has helped to boost demand for safe-haven currencies such as the Franc on Tuesday, with an unexpectedly sharp fall in exports reigniting fears about a hard landing for the world’s second largest economy. The Franc has since been shored up by an unanticipated improvement in the Swiss Unemployment Rate, which was shown to have fallen to 3.7% in February. With the latest Consumer Price Index also rising from -1.3% to 0.8%, confidence in the outlook of the Swiss economy has generally improved today.
GBP/CHF Exchange Rate Forecast: Stronger UK Production Data to Prompt Pound Rally
With no further Swiss data due for release this week, however, the Franc may struggle to hold onto its recent gains against rivals. Nevertheless, should market confidence remain diminished, the safe-haven currency may continue to benefit from the increasing risk aversion of investors.
Wednesday could see the Pound recover some strength on the back of the latest UK Industrial and Manufacturing Production figures, with pundits anticipating improvement both on the month and the year. Stronger levels of production would seem to suggest that the domestic economy had not been so negatively impacted by market turbulence at the beginning of the year, offering hopes that ‘Brexit’ volatility may not ultimately drag so harshly on the economy.
Current GBP, CHF Exchange Rates
At the time of writing, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was slumped in the region of 1.4123, while the Swiss Franc to Pound Sterling (CHF/GBP) pairing was trending higher around 0.7075.
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