This Swiss Franc report will examine the factors that could affect exchange rates in the short term to help you stay informed if you need to make a currency transfer. The table below shows the difference you would have received when buying £200,000 at the high compared to the low for the past month.
|Currency Pair||% Change||Difference on £200,000|
Following the news that North Korea tested their first long distant missile capable of delivery a possible nuclear warhead to the US mainland, the world has become a little less secure. This drove international capital to traditional safe haven currencies and helped push up the value of the Swiss Franc higher, making it more expensive to buy.
Generally speaking the CHF valuation does not depend on Swiss economic data and more traditionally is driven by international demand as a safe haven. The stability of the politics in Switzerland has helped it to continue to keep this status.
The problem however continues to be the building FX reserves which the Swiss National bank (SNB) now holds as it tries to counter the inflow of international investment to keep the value of the CHF down. The SNB is now the world’s eighth most important investor with $80 billion Dollars invested in the US market.
Markets seemed to barely react to the release of their most recent Retail figures which were released earlier this week. It came out negative and was the second monthly drop in a row.
Next on the horizon is Consumer Price Index data due for release this morning. This is expected to show a fall and could therefore give GBPCHF traders higher levels still, I personally would not be surprised if we see GBPCHF climb to the top levels for the week and potentially reach a month high in today’s session. This however I expect to be a short lived opportunity, unemployment data for Switzerland is released tomorrow morning and is expected to show a fall once more. As a result I think today is the best time to buy this week and sellers may wish to wait until the end of the week for better levels.
Thank you for reading today’s Swiss Franc report, I would greatly appreciate any feedback you have and would take pleasure in replying personally. Please feel free to get in touch here.
First class service as ever from Stephen Eakins. Very quick and superb advice!!
Excellent service from Stephen Eakins as always. Manages to achieve a high standard of professionalism and efficiency combined with a friendly approach.
Sending money to France has been so easy. I was amazed at how simple the process was. Steve Eakins is a pleasure to deal with, no fuss or drama just a great, friendly attitude.