The value of the CHF has been gaining significantly against the UK pound over the last three weeks. Since my last report when I highlighted a major level of resistance breaking, rates have now dropped 3.5% resulting in a £200,000 purchase securing nearly CHF 10,000 less.
|Currency Pair||% Change (Month)||Difference on £200,000|
Sterling weakness has been a major contributing factor to the fall in value but also there has been an increase in demand for the CHF due to global tensions rising. As a safe haven currency, during times of uncertainty the demand for CHF increases driving its value and cost to buy up.
US China trade talks taking a step back has threatened global growth forecasts going forward. President Trump also declared a national emergency regarding trade in technology products. The suggestion was that this is really against China as it targets Chinese tech company Huawei from selling in the US market.
Tensions are also running high in the Middle East following reports that there had been an assault on Saudi Arabian oil infrastructure by Iran sponsored rebels. The Iranian ambassador to the UK warned that “there would be consequences” if a solution to the US sanctions afflicting Iran was not found within 60 days. This escalation has also resulted in Iran abandoning commitments made under the 2015 nuclear deal, heightening global tensions and therefore reducing global risk appetite.
The next domestic data release from Switzerland is Industrial Productivity released on Thursday. This is expected to show an expansion which in most economies would have a direct correlation with the currency of that economy. In the unique CHF scenario this may easily be overlooked by the European elections taking place at the same time across Europe.
Yet again, a stress free, professional and secure service from FCD. I wanted the facility of moving funds easily from the UK to France on a regular basis and that’s exactly what I get from Steve Eakins and his team.
Always easily reached and offer excellent and responsive service. Even though I have no knowledge in this area I felt supported and well assisted.
Always a top service. Steve Eakins is always on the ball and keen to help.
The service was conducted very easily and quickly and Steve Eakins was a true professional.