GBP/CHF Exchange Rate Falls as Brexit Clock Ticks Down
The Pound Swiss franc (GBP/CHF) exchange rate is down today and is currently trading around Chf1.3225.
Sterling failed to benefit from the release of the Halifax house prices figures for February today, which soared above expectation to 5.9% against January’s -3.0%.
Andy Soloman, a property expert and CEO at Yomdel, commented:
‘On the face of it, we remain in a fairly strong position with the property market holding firm due to a growing level of buyer sentiment and the consistent affordability of borrowing money. Both are helping to bolster a market that has otherwise been running on the fumes of political uncertainty for quite some time.’
Brexit developments are once again in focus today, with Nathalie Loiseau, the French Europe minister, urging the UK to come up with new proposals to break the Brexit deadlock.
Loiseau warned the UK, saying:
‘Why would be there be an extension without a reason? There needs to be something specific to justify an extension. A short extension: why not, if there is a good and credible reason.’
The Swiss franc (CHF), meanwhile, gained on the Pound following the publication of the Swiss unemployment rate figures for February which remained steady at 2.4%.
GBP/CHF Exchange Rate Drops as EU Pressurises UK for Irish Backstop Consensus
Many Pound investors are feeling jittery today with the EU putting increasing pressure on the UK to reform a plan on the Irish backstop within 48 hours.
Attorney General Geoffrey Cox has announced that talks will resume with the EU ‘very shortly’ and may extend over the weekend, in which the UK and EU will attempt to formulate a legally-binding change to the backstop issue.
Changes to the Irish backstop are crucial to Prime Minister Theresa May’s Brexit deal passing through Parliament on the important 12 March ‘meaningful vote’, and if Cox fails to secure any significant changes this could see the Pound fall further.
CHF/GBP Exchange Rate Rises as Swiss Franc Benefits from Safe-Haven Demand
The Swiss franc, meanwhile, has benefited from its safe-haven status as geopolitical uncertainties have escalated between the US and China following the Chinese tech giant, Huawei, suing the US over a law which limits the usage – and sales – of the Chinese company’s technology within the US.
Many CHF traders will be awaiting any progress between the two superpowers, for if there appears to be a turning point in their negotiations, this could weaken the Swiss franc as safe-haven demand lowers as traders seek out riskier currencies.
GBP/CHF Outlook: Brexit Developments in Focus for the Pound
Sterling traders will be looking ahead to the publication of the UK consumer inflation expectations figures tomorrow, and with any signs of an increase this could prove Pound-positive.
Swiss franc traders, meanwhile, will remain sensitive to any global political developments either between the US and China or within the EU, and, on the signs of any an increased demand for safe-haven currencies, this could see the CHF/GBP exchange rate rise.
The GBP/CHF exchange rate, however, will remain fixated on Brexit developments as the EU has effectively demanded the UK to present a clear withdrawal agreement ahead of next week’s significant ‘meaningful vote’, and if May’s deal looks to be gaining any traction over this weekend, we could see the Pound rise.