This Swiss Franc report will address the factors that could have an effect on upcoming transfers over the coming weeks. The table below looks at the difference between the rate you would have achieved when purchasing £200,000.00 CHF at the low and high levels during the past month.
|Currency Pair||% Change||Difference on £200,000|
Buying the CHF with GBP has become over 5% cheaper over the last month. Over the last week however the GBPCHF has fallen in value by over 1.5% meaning a £100,000 transfer now achieves almost CHF 2,000 less. This recent fall has been as a result of both global risk and the decision made by the Swiss National Bank (SNB) to keep interest rates unchanged at their recent meeting. This last week, as we have seen the Korean tensions move up a gear it resulted in additional demand for the CHF as investors buy it as a safe haven currency. It is considered a safe haven currency historically due to its neutral political situation. This in turn causes a problem for the SNB as it has to manage its currency’s value, normally by intervening and trading themselves to help off-set it’s climbing value.
Earlier this week we had the latest update from the SNB when they held its main interest rate, and suggested a softening on the Franc’s strength. We also had the latest Consumption figures released which did show a sharp rise which was put down to an increase in both new car sales and hotel stays.
Tomorrow we have the next economic release from Switzerland with a business survey. This is a tier two release, we generally rate economic data when released 1 to 3. 3 being the most influential like a potential interest change, and 1 being the lowest like how many car sales there have been. This is a tier two release and is expected to show an improvement so I personally expect buying CHF to get more expensive as we end the week.
Thank you for reading today’s Swiss Franc report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. Feel free to get in touch with any queries on 01494 725 353 or email me here.
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