GBPCHF rates have continuesd their fall recently and following the news from the Bank of England (BOE) yesterday that future interest rate hikes in the UK were some time away, GBPCHF now sit at a 5 month low. The Swiss Franc report below discusses the internal and external factors that are currently supporting CHF with the table below showing the range of exchnage rates troughout the past month showing the difference in CHF you could have achieved when selling £200,000.00.

Currency Pair% ChangeDifference on £200,000
GBPCHF1.3%CHF 3400
SNB manipulating the Francs value?

GBPCHF rates have continues their drop recently and following the news from the Bank of England (BOE) yesterday that future interest rate hikes in the UK was some time away, GBPCHF now sit at a 5 month low.

Rates have dropped nearly 2.5% over the last 2 weeks and 6.5% over the last 4 months, now sitting below the 1.30 level. This key level of resistance has been broken a few times over the last week suggesting a further drop could well be on the cards.

Yesterday was a bank holiday in Switzerland but focus domestically from Switzerland now is on Consumer Spending data that is released at 9:30 this morning. This is expected to show an expansion which will probably result in further gains for the CHF making it more expensive still.

SNB trading profits have a direct impact on its value

Next Tuesday is an also key day for the CHF as we have the latest Foreign Reserve data. The Swiss National Bank (SNB) has historically had to intervene in its currency’s value by buying foreign assets including currency and stock to offset demand for its currency.  This release is keenly watched as it helps the market understand how much further investment or profits the Central Bank is making. As the SNB holds these assets, it reports a profit or loss in the changing value of these foreign monetary classes. At the end of June they reported a 5.11 billion Swiss francs profit for the first 6 months of the year, compared to 1.22 billion the year before.  As you can imagine this added value to the CHF and is one of the main drivers in its value increasing. (Interestingly the SNC reported a 54 billion Swiss franc profit for the whole of last year.

Economic data for next week to drive the CHF

On Thursday of next week we also have Consumer Price Index, Unemployment figures and Production Price index figures from Switzerland. All are expected to show an improvement so many expect the value of the CHF to increase over the coming 7 days.

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.