Pound to Swiss Franc Exchange Rate Today: GBP/CHF Falls after UK Growth Data

December 23, 2014 - Written by John Cameron

STORY LINK Pound to Swiss Franc Exchange Rate Today: GBP/CHF Falls after UK Growth Data

The Pound to Swiss Franc exchange rate shed 0.2% on Tuesday as Sterling was pressured lower by disappointing third quarter growth data for the UK.

The news that the UK’s current account deficit unexpectedly widened in the third quarter also weighed on the Pound as it upped the odds of the US Federal Reserve keeping interest rates on hold for some time to come.

The shortfall swelled from 24.3 billion Pounds in the second quarter to 27 billion Pounds in the third quarter. The Pound was trending lower against almost all of its most traded currency counterparts in the hours following the data publication.

In the view of currency strategist Peter Kinsella; ‘The Pound weakened a bit after the data. I don’t think the market liked the fact that the current-account deficit worsened. The Pound will probably move in a narrow range as people refrain from taking new positions before the New Year.’

The Pound lost 0.2% against the Euro and shed 0.4% against the US Dollar.

Meanwhile, the UK’s growth data confirmed expansion of 0.7 % in the third quarter on a quarter-on-quarter basis, but the annual growth figure was negatively revised to 2.6% from 3.0%, putting additional pressure on the Pound. The UK’s index of services did rise by more-than-expected on the month in October, climbing 0.3% instead of the 0.2% forecast, but Total Business Investment dropped by -1.4%. A decline of -0.7% had been projected. The UK’s BBA Loans for House Purchase data for November surprised to the upside, coming in at 36717 instead of the 36400 anticipated, with the previous month’s number being positively adjusted to 37153. However, the better-than-expect result wasn’t enough to counter the adverse impact of the UK’s growth and current account figures.

Data for Switzerland was lacking on Tuesday, although demand for the safe-haven currency did ease slightly as the US published its strongest growth data for over a decade. On an annual basis, the US economy was shown to have expanded by 5% in the third quarter. While there are no UK reports to be aware of on Christmas Eve, the Pound to Swiss Franc exchange rate could fluctuate following the publication of Switzerland’s KOF Leading Indicators gauge. The measure came in at -1.3 in November and a reading of 1.2 is forecast for December. Before the close of the year, Switzerland will also be releasing its UBS Consumption Indicator.

Swiss Franc Exchange Rates

The Pound to Swiss Franc exchange rate is -0.08 pct lower with a conversion rate of 1 GBP equals 1.53238 CHF.
The Euro to Swiss Franc exchange rate converts -0.05 per cent lower at 1 EUR is 1.20270 CHF.
The US Dollar to Swiss Franc conversion rate is +0.34 pct higher at 0.98775 USD/CHF.
The Canadian Dollar to Swiss Franc conversion rate is +0.56 pct higher at 0.85025 CAD/CHF.

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