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Swiss Franc Forecast: GBP/CHF Exchange Rate to Climb

November 19, 2014 - Written by John Cameron

The Pound Sterling (currency:GBP) has posted an improved performance against the other major global currencies including the Swiss Franc (currency:CHF) during today’s session following the publication of the minutes of the latest Bank of England (BoE) monetary policy committee meeting.



swiss franc exchange rate forecasts
The Pound to Swiss Franc exchange rate is +0.24 pct higher with a conversion rate of 1 GBP equals 1.50163 CHF.
The Euro to Swiss Franc exchange rate is +0.01 pct higher with a conversion rate of 1 EUR equals 1.20150 CHF.
The Swiss Franc to Euro exchange rate today is converting -0.01 per cent lower at 0.83230 CHF/EUR.
The Swiss Franc to Pound Sterling conversion rate is -0.24 pct lower at 0.66594 CHF/GBP.

Pound Rate Today: Spread of Views Amongst MPC Committee



Encouragingly for the Pound, the minutes also pointed to considerable levels of support for a tightening of monetary policy amongst the seven members who eventually voted against a rate hike, stating that, ‘for most members, the outlook for inflation in the medium term justified maintaining the current stance of monetary policy,’ and observing a ‘material spread of views’ amongst the committee.

8-1 Split Was Touted

Neil Jones of Mizuho Bank explained the situation, stating earlier that, ‘investors are reducing short-sterling positions on the BOE minutes. There was an expectation of greater dovishness and a possible return to an 8-1 split.’
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Pound to euro Rate Today: GBP/EUR Breaches 1.2500 Threshold



The Pound Sterling to euro exchange rate briefly climbed back above the psychologically significant 1.2500 GBP EUR threshold after the release of the BoE minutes, while the Pound Sterling US Dollar exchange rate improved from an intraday low of 1.5585 to touch 1.5701 GBP USD.

EUR CHF 1.2000 Floor To Be Maintained>



Meanwhile, a survey of independent analysts has found a broad-based expectation that the Swiss National Bank (SNB) will maintain its current minimum floor of 1.2000 on the EUR CHF exchange rate in an effort to boost the fortunes of Switzerland’s exporters abroad.

There has been some market noise regarding a potential scrapping of the fix, in the light of Switzerland’s referendum on the future scope of SNP monetary policy, which takes place at the end of this month.

However, the SNB’s hand has been forced by the aggressive weakening of monetary policy by the European Central Bank in recent months – in getting rid of the floor; the SNB would open the floodgates for a concerted strengthening of their local currency.
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