This report will address the factors that are likely to affect exchange rates in the coming weeks and months if you are buying abroad or making a currency transfer. The table below shows the difference in Swiss Francs you would achieve during the high and low points of trading through the past month.

Currency Pair% ChangeDifference on £200,000
GBPCHF2.50%CHF 6,500
Why has GBPCHF climbed this week?

Why has GBPCHF climbed this week?

GBPCHF rates have climbed by 1.5% this last week as a result of Sterling strength and CHF weakness. Buying CHF is now near the cheapest levels we have seen for 18 months giving buyers a great opportunity. The reason for this gain in value has been a combination of GBP strength but also a weakness from the CHF as global risk appetite grows. The next event on the horizon domestically within Switzerland is on Tuesday when trade Balance figures are released including import and export figures.

As mentioned in my last report this is for the December period and there is an expectation that a festive demand for Swiss products including luxury watches and chocolates could inflate this figure, strengthening the CHF.

There is an expectation that a festive demand for Swiss products including luxury watches and chocolates could inflate import and export figures, strengthening the Swiss Franc.

Today business confidence figures are released and on Thursday Retail data. These are both expected to show an amount of contraction which could in turn weaken the CHF.

Clients looking to buy CHF may want to take current levels as a result of the pending trade figures on Tuesday, whereas CHF sellers may want to wait with the hope of achieving more for their money on Tuesday’s release.

World Economic Forum in Davos impact on Currency?

Every year the financial leaders of the world from Presidents to central bankers to royalty meet in Davos in Switzerland. This event has been growing in popularity and indeed the impact that it can have on the currency market. Historically it has been used as a forum to make both policy change and an insight to potential future changes.

We heard from President Macron yesterday who continue to push for his ‘fairer’ EU dream shared by Germany. Theresa May has her speech around lunchtime today and President Trump is scheduled to speak tomorrow. This is something to be aware of if you have exposure to the CHF as due to its safe haven status many expect President Trump’s tone, especially with regards to North Korea, to drive demand and therefore the price for the CHF.

For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me using 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.