Pound Sterling to Swiss Franc Exchange Rate Firms; CHF Stronger vs Euro (EUR) and US Dollar (USD)

August 27, 2014 - Written by David Woodsmith

STORY LINK Pound Sterling to Swiss Franc Exchange Rate Firms; CHF Stronger vs Euro (EUR) and US Dollar (USD)

The British Pound to Swiss Franc exchange rate (GBP/CHF) traded higher earlier in the week despite a poor day regarding UK Loans for House Purchase figures.

The Swiss Franc (CHF) has shown gains against a basket of currencies during the mid-week trading session, including the Euro (EUR), Pound Sterling (GBP) and US Dollar (USD).

The Swiss economy however has seen high level Swiss business executives such as Nestlé representatives postpone their trips to Russia until 2015 following the unrest in Ukraine. Meanwhile Swiss Bank Pictet has published figures pertaining to its first half of the year for the first time in the banks long history.

Here's the latest forex pairs for the Swiss currency (latest update 29th Aug 2014):

- The Swiss Franc to Australian Dollar exchange rate is up 0.15 per cent at 1.17061 CHF/AUD.
- The Swiss Franc to Canadian Dollar exchange rate is down 0.07 pct at 1.18551 CHF/CAD.
- The Swiss Franc to Euro exchange rate is 0.05 pct higher at 0.82922 CHF/EUR.
- The Swiss Franc to Pound Sterling exchange rate is 0.01 pct higher at 0.65879 CHF/GBP.
- The Swiss Franc to New Zealand Dollar exchange rate is up 0.03 per cent at 1.30524 CHF/NZD.
- The Swiss Franc to US Dollar exchange rate is up 0.04 pct at 1.09322 CHF/USD.

Swiss Bank Pictet is currently under investigation along with another 11 banks following accusations of being involved in aiding Americans dodge taxes. The publications for over 200 year old Pictet—one of the most established banks in Switzerland—has shown figures of 975 million Swiss Francs by way of operating income in the first half of the year allowing a profit of 203 million Swiss Francs to be made. A Pictet representative Jacques de Saussure commented that 2014 had proved to be a ‘very difficult year.’ Moreover, he continued: ‘Interest rates are very low and volatility is very low, so we have had low volumes in forex and other transactions.’ With no other figures to compare this to, it makes it very hard to observe the banks progress, but Pictet is at least attempting to make its trading visible to all.

Scotland Debate Shrouds Fate of the Pound Sterling and Future Forecasts of Gains

At present the speculation surrounding the discussion of Scotland leaving the UK is having an effect on the Pound. Some have speculated that Scotland could agree to a currency union with the UK to continue using Sterling; however, until the referendum, all eventualities are likely to face discussion with some believing that an independent Scotland would potentially have to use the Euro (EUR). With the Bank of England assuring the public that all eventualities have been prepared for—but failing to give further indication of the plans for an independent Scotland and the Pound—speculation continues. Fiscal Affairs Scotland representative John McLaren suggested that: ‘there may be a way to allay the UK government’s economic concerns over the implications of a currency union. However, McLaren also noted that: ‘Scotland will effectively have little in the way of control over its monetary and fiscal policy.’

As the referendum edges closer the debate is heating up, with discussions between politicians becoming tense. Another Fiscal Affairs Scotland spokesperson, Jo Armstrong, stated: ‘While the Governor for the Bank of England and the Permanent Secretary of the UK Treasury accept that, in theory, such a currency union is possible, at present, UK politicians have effectively ruled out such a currency union under any conditions.’

In upcoming data publications, Wednesday will see the Swiss UBS Consumption Indicator whilst Friday will see the release of the KOF Leading Indicator. The UK however will see noteworthy data releases on Friday by way of Consumer Confidence statistics, and Nationwide House PX figures. The Pound to Swiss Franc exchange rate is likely to continue on its sideways trajectory in the currency market, dependent on geopolitical tensions escalating and data releases in the latter half of the week.

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TAGS: Currency Predictions Daily Currency Updates Poun Forecasts