GBPCHF rates have fallen by 2.1% this last week as a result of CHF strength and GBP weakness. Brexit tone updates, UK growth forecasts and lastly the stock market fall have all had an impact on the value of the safe haven Swiss Franc. This movement has resulted in £200,000 achieving nearly CHF 6,000 more when timed well.
In the table below you’ll see high to low GBPCHF exchange rate movement when exchanging £200,000 to Swiss Francs yesterday:
|Currency Pair||% Change||Difference on £200,000|
Yesterday the Federal Customs Administration in Switzerland released the last Consumer Price Index data, this showed a fall in comparison to the expectation and last month’s figure. This failure to hit expectations in some weakness for the Swiss Franc making it cheaper to buy.
Next on the horizon are Production Price Index figures released this morning and a key speech by the Swiss National Bank Chairman, Fritz Zurbrugg. This will be rather interesting as a result of the current account surplus that the bank is running. As the bank tried to keep the CHF within a certain range of value against the Euro it has been buying foreign assets to offset the demand for the safe haven Swiss Franc.
In real terms many don’t expect any change in the super-loose policy that the bank is currently taking to try and offset the strong Swiss Franc.
If confirmed, this will probably result in a run on the CHF making it more expensive to buy, something to consider if you are looking at buying Swiss Francs through the remainder of the month of February.
Next Tuesday is another key day for the CHF as trade balance figures are also released. This is traditionally one of the major driving factors for the CHF due to the local economy’s dependency on tourism, watch exports and chocolate.
Outside of economic data the CHF will continue to be driven by world risk management meaning anyone with exposure to the CHF should also be watching the developments on the stock markets.
For more information on how future data releases could affect your currency requirement, call our trading floor on 01494 725 353 or email me at firstname.lastname@example.org.