This Swiss Franc report will address the factors that could have an effect on CHF exchange rates over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 at the low and high levels during the past month.

Currency Pair% ChangeDifference on £200,000
GBPCHF1.3%CHF 3,400
Swiss francs at cheapest point since Brexit

Swiss francs at cheapest point since Brexit

GBPCHF levels have climbed this week and are now towards the top levels seen since the Brexit referendum.

Sterling rates climbed this week following the re-shuffle by Theresa May of her government which reconvened this week after the winter recess. The reshuffle gave the Pound a boost as there were no significant changes in position, which suggested there was no real change in the way in which the government will handle the Brexit negotiations.

Investors were focussed on how changes could hint at what tone the government will take in the UK-EU transitional negations due to start shortly and the trade talks in March.

Swiss unemployment update

On Monday the Swiss Consumer Price Index figures were released which were higher than previously expected at 0.8% for December. Yesterday Swiss unemployment data was also strong coming in at 3% for December. It showed that the level of unemployment in Switzerland in 2017 fell to 3.2% for the year from 3.3% in 2016. This fall actually only amounts to just over 6,000 people in the respectively small country of Switzerland. This would have normally resulted in an increase in the value of the currency but at this time of year a lot of investments are made, resulting in an outflow of capital from the safer haven of the CHF to riskier assets for the year. It has been this exodus which has resulted in the fall in CHF value giving buyers some of the best opportunities seen in over a year.

Festive watch demand expected to make CHF stronger

The next driving factors in the UK or elsewhere globally impacting the demand for this safe haven currency. The next Data release from Switzerland is next Thursday with Producer and Import figures. These have generally been showing improvements and most expect there to have been an influx of demand for Swiss made items like watches over the festive period, boosting these figures which could potentially make the CHF more expensive to buy.

Thank you for reading today’s market report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. I am more than happy to assist you with any of your currency requirements. Feel free to e-mail me at hse@currencies.co.uk.

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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.