With the currency markets moving every two seconds, it can be vitally important to be aware of what is driving the currencies in or out of your favour. The difference in CHF you would have received when purchasing £200,000.00 during the high and low points of the past month are shown in the table below:

Currency Pair% ChangeDifference on £200,000
GBPCHF2.75%CHF 7,250
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Why has the GBP/CHF rate climbed this week?

GBP/CHF rates have climbed by 1.5% this last week as a result of Sterling strength and CHF weakness. At the start of the week the Swiss Franc gained in value as a result of tensions with North Korea, this caused a run to safe haven currencies including the Franc, making it more expensive to buy. Yesterday the Federal Customs Administration in Switzerland released the last trade balance figures, this showed a fall in comparison to the expectation and last month’s figure. This resulted in some weakness for the Swiss Franc making it cheaper to buy. Interesting however, they break down the export figures and include the total number of watches exported. This figure climbed by 9.3% and is the biggest gain seen in 4 years, Switzerland exported CHF 1.85 billion worth of watches last month.

What next for the direction of the GBP/CHF rate?

Next on the horizon is a key speech by the Swiss National Bank Chairman, Thomas Jordan. This will be rather interesting as a result of the ballooning current account surplus that the bank is running. The market will be looking for some form of information or forecast with regards to how the bank wishes to manage this exposure going forward. In real terms there will probably be confirmation that the super-loose policy that the bank is currently taking will continue to try and offset the strong Swiss Franc. This, if confirmed will probably result in a run on the CHF making it more expensive to buy, something to consider if you are looking to purchase Swiss Francs through the remainder of the month of November.

On Friday we have the release of the Q3 industrial Production data. This has also been showing some signs of improvement. It too will be keenly looked at for any indication towards the Swiss GDP figures which are released next week on the 30th. Swiss GDP figures has been lower than the Eurozone this year and any suggestion of an improvement will probably result in further gains for the Swiss Franc. There certainly seems to be more likelihood that the CHF will end the week more valuable than where it stands at the moment.

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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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.