GBP/CHF Exchange Rate Climbs Higher as Swiss Franc Weakens on Geopolitical Recovery
The Pound Swiss Franc (GBP/CHF) exchange rate is up by 0.6% today and is currently trading around 1.3269fr on the inter-bank market.
The Swiss Franc (CHF) fell against the Pound (GBP) following a slump in geopolitical volatility, which has left safe-haven currencies like the Swiss Franc in low demand.
With reports saying that the Swiss Franc is set for its worst month since 2017, this has seen the currency considerably weaken on a lack of market confidence.
Meanwhile, dovish comments from the Chairman of the Swiss National Bank, Thomas Jordan, have continued to haunt Swiss markets, with warnings that the SNB would keep its expansive monetary policy for the foreseeable future.
Mr Jordan, at a meeting with the International Monetary Fund in Washington, had previously said:
‘We always have the possibility to further cut the negative interest rates. We have already gone very far, but there is still the possibility. And we can also, when necessary, further expand our balance sheet with interventions.’
The Pound, meanwhile, has strengthened today as MPs return to Westminster after the Easter break to once again engage in ongoing Brexit discussions.
This has left some Sterling traders feeling optimistic that a political breakthrough may be imminent, which could potentially break the present stalemate between Labour and the Conservatives in cross-party talks.
GBP/CHF Exchange Rate Edges Higher as Cross-Party Talks Resume
Prime Minister Theresa May, meanwhile, has come under increasing pressure to resign today, following comments from a senior 1922 Committee member, Nigel Evans, who called for her to step down.
Mr Evans said:
‘I believe the only way we’re going to break this impasse properly is if we have fresh leadership of the Conservative party … If there was an announcement today by the prime minister then of course we could start the process straight away.’
With an absence of UK economic data today, many Pound traders have been focusing on Brexit developments instead.
Cross-party talks are set to resume between Labour and the Conservative party, however many traders are remaining cautious as Theresa May’s grip on the situation appears to be slipping as MPs openly call for her resignation.
Labour also seems resolute on its position, and the party’s leader, Jeremy Corbyn, has also criticised the Tories for their reluctance to compromise on the Brexit deal.
GBP/CHF Forecast: Pound Could Rise on Signs of a Cross-Party Brexit Progression
Swiss Franc traders will be looking ahead to tomorrow’s printing of the Swiss ZEW Survey into business expectations, and with any signs of improvement, this could buoy the CHF/GBP exchange rate.
Tomorrow will also see the release of the UK’s public sector net borrowing figures for March, which are expected to improve.
The Pound Swiss Franc exchange rate is expected to be driven by political developments this week, and as Brexit is once again in a deadlock with the two parties failing to come to a consensus, any signs of progression could push Sterling higher.