Pound to Swiss Franc (GBP/CHF) Exchange Rate Bearish; Barclays Forecast Pound Rally

August 19, 2014 - Written by James Fuller

STORY LINK Pound to Swiss Franc (GBP/CHF) Exchange Rate Bearish; Barclays Forecast Pound Rally

The currency market presently sees the Pound to Swiss Franc exchange rate trending down at 1.5086 GBP CHF near the session low point. The currency pairing reached session highs of 1.5172, whilst the lowest trough today dipped to 1.5071.

The Swiss Franc has fallen in popularity this week following the demand for safe haven currency lessening; however the Pound has trumped all other currencies in the unpopularity contest falling dramatically in the market today.

The current CHF levels are:

The Swiss Franc to Euro exchange rate is trading up +0.07% at 0.82596 CHF/EUR.
The Swiss Franc to Pound Sterling exchange rate is trading up +0.37% at 0.66191 CHF/GBP.
The Swiss Franc to US Dollar exchange rate is trading down -0.25% at 1.10004 CHF/USD.

If you are interested in transferring money from UK to Switzerland or vice-versa, please note the currency rates above are the inter-bank rates. To achieve the best exchange rates on a money transfer you should consult a foreign exchange broker.

The Swiss Franc rose last Friday after the US experienced a disappointing week by way of data releases and investors sought the safe haven currency. Furthermore, with escalations in the unrest between Russia and Ukraine the ‘Swissie’ gained in popularity to investors with less risk appetite; however, the threat has lessened in the currency market of late, causing the Franc to soften. Expert in the field Omer Esiner stated: ‘Risk has evaporated from the markets after the Ukraine headlines. We have seen investors use the Yen and Swiss Franc as safe harbours.’ Moreover recent popularity has encouraged the Swiss Franc to climb higher in the currency market, reaching its highest level against the Euro (EUR) in the latter year and a half.

Pound Plummets in the Depths of the Currency Market

Conversely the Pound has seen a less positive time in the currency market of late, following conflicting reports from the Bank of England (BoE) and continuous poor figures. However, despite the Pounds dramatic tumble down against all 16 other major counterparts, Barclays are speculating that the Pound could reach highs in the currency market not seen in the latter six years against the US Dollar (USD). The Pound has fallen 1% in the month of August, plummeting to its lowest point since the first quarter of 2013 and making Sterling the worst performer in the currency market this month.

Barclays traders however are speculating that the Pound could rocket upwards, to attain highs against the US Dollar estimating there to be a 23% chance the UK will see interest rate hikes in 2014. Barclays representative Mitul Kotecha stated: ‘There’s no reason why we can’t see a retest of the multi-year highs given the fact that we expect the Bank of England to hike rates earlier and positioning has now squared off. The 200-day moving average looks like a fairly good level of support.’

Pound to Swiss Franc Exchange Rate Trajectory

In the latter month the Pound to Swiss Franc exchange rate has progressively softened, and looks set to continue at its current rate. The Pound needs a highly influential burst of figures or hawkish Bank of England to gain against other majors in the currency market. This Wednesday will see the release of the Bank of England’s most recent meeting minutes which may encourage the Pound to climb against other majors following Governor Mark Carney’s recent statement that interest rate hikes were on the horizon regardless of wage data. Carney stated: ‘People might have different views on the exact timing, but it will happen and people should plan accordingly.’ However the Swiss Franc is likely to remain bullish until the Pound gains a backbone; the Franc may see some slight influence from July’s Swiss Balance of Trade figures which reach publication on Thursday.

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TAGS: Currency Predictions Daily Currency Updates Poun Forecasts