Pound to Swiss Franc: GBP/CHF Exchange Rate Falls in Quiet Data Day, BoE Speeches Leave Pound Unaffected

February 24, 2015 - Written by Toni Johnson

STORY LINK Pound to Swiss Franc: GBP/CHF Exchange Rate Falls in Quiet Data Day, BoE Speeches Leave Pound Unaffected

The Pound slipped against the Swiss Franc on Tuesday in a quiet day for domestic data from both the UK and Switzerland.

The CHF exchange rate has been fluctuating since the Swiss National Bank decided to remove the 1.20 tie to the Euro, an event that initially caused the Swiss currency to surge.

However, the Swiss economy has felt the effects of the currency movement in both positive and negative manifestations. Some Swiss citizens have taken to ordering food from across the border in Germany as the higher Franc allows more for their money when exchanged for the common currency.

Antonia Molloy reported: ‘Uli Burchardt, the mayor of Constance, which borders Switzerland to the northeast, told the publication that German vans have been stopped by Swiss customs officials after it was discovered they had been delivering up to 60 pizzas at a time. And fast food is not the only thing the Swiss have been seeking elsewhere, as people cross the border to do their weekly shop and even visit the dentist.’

Swiss data is a little thin on the ground this week, lending a lot of the ‘Swissie’s’ movement to any worldwide occurrences.

However, Wednesday will see the release of the Swiss Consumption Indicator, which may cause a little Franc movement.

The December ecostat had resided at 1.42.

CHF Exchange Rate Outlook

Meanwhile, Friday’s Leading Indicator is expected to show a decline from 97 to 89 in February. Monday saw the Swiss Money Supply figure rise 3.2% in January on an annual basis. Furthermore, some analysts have predicted a period of Swiss Franc depreciation as the SNB continues to intervene in the forex market.

One analyst stated: ‘The weekly SNB sight deposits of domestic banks fell slightly last week to CHF382bn (from CHF394bn last week), suggesting the SNB has been sidelined on intervention in the past week.’

Pound Sterling to Swiss Franc Exchange Rate Forecast

Meanwhile, the Pound remained relatively unchanged after the Bank of England testified to the Commons Treasury Committee.

BoE Governor Mark Carney commented on the topic of house prices, saying: ‘We have, as the MPC, a view that house price growth nationwide will decelerate to the levels of previous years to be broadly consistent with income growth, so within the range of 5-6 percent, but there will be substantial regional variations.’

Governor Carney is expected to speak again on Wednesday, and this could be an opportunity for the Pound to gain if any hawkish remarks are made.

Swiss Franc Exchange Rates

The Pound to Swiss Franc exchange rate converts -0.02 per cent lower at 1 GBP is 1.46955 CHF.
The Euro to Swiss Franc conversion rate is +0.04 pct higher at 1.07856 EUR/CHF.
The US Dollar to Swiss Franc exchange rate today is converting -0.03 per cent lower at 0.95101 USD/CHF.
The Canadian Dollar to Swiss Franc exchange rate converts +0.67 per cent higher at 1 CAD is 0.76157 CHF.

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