As global factors affect the appetite for the Swiss France, despite Unemployment levels released at the beginning of this week staying the same, CHF fell in value. The table below shows the difference in CHF you could have achieved when buying £200,000.00 during the high and low points of the past month.
|Currency Pair||% Change||Difference on £200,000|
Rates have climbed for GBPCHF, Sterling strength has certainly helped but in recent days it has been more CHF weakness. GBPCHF rates have climbed by over 1.3% in the last week and 3.6% over the last month.
At the beginning of the week Swiss Unemployment data was released and stayed steady at 2.9%. This was widely expected however the CHF started to fall in value. This is again due to global factors which had impacted the demand for the safe haven currency. With further conversations about global interest rates climbing most CHF holders seem to have been selling their safe haven positions and investing elsewhere in the search for a better return.
Commentary from the Swiss National bank recently has also suggested that they are struggling to balance out demand for the CHF and therefore stabilise its value. This in turn has created an opportunity for some speculators which have been betting that the CHF will continue to fall in value – which it has.
What next for the direction of the GBPCHF rate?
Next on the horizon are Production Price index figures released on Monday. This is expected to show an improvement, however this is normally overlooked by traders who set the value of the CHF via its demand.
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 Syrian, Russia, Iran and US relationship.
President Trump this week cancelled his first official trip to Latin America after the claimed chemical attacks in Syria. The US’s response to this developing situation is yet unknown, however it definitely has the potential to impact the value of buying or selling 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 here.
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