Swiss Franc (CHF) Exchange Rate Declines against Sterling (GBP) & Euro (EUR) Today as Swiss GDP Revised

June 16, 2015 - Written by Admin

STORY LINK Swiss Franc (CHF) Exchange Rate Declines against Sterling (GBP) & Euro (EUR) Today as Swiss GDP Revised

Swiss ZEW Expectations Survey Could Cause Swiss Franc (CHF) to Euro (EUR), Pound (GBP) Exchange Rate Movement Today

The Swiss Franc may fluctuate against its major currency counterparts later today if the ZEW survey prints poorly. The index came in at -0.1% in May and a lower reading in June would be Franc-negative. The GBP/CHF currency pair is also likely to fluctuate in response to the UK's Employment data while the CHF/EUR exchange rate may experience volatility if the Eurozone's Consumer Price Index for May is revised from previous estimates. Of course, today's FOMC interest rate announcement is likely to be the main cause of currency market movement.

Earlier...

GBP/CHF Exchange Rate Climbs as Swiss Growth Estimates Take a Knock, Pound Sterling Higher after Inflation Data

The Pound rose against the Swiss Franc on Tuesday after Swiss forecasts were revised lower. The Swiss government announced that it had cut its expectations for the economy’s growth in both 2015 and 2016 as a result of the strong Franc exchange rate. The Swiss National Bank caused the CHF currency to jump in January when it announced that it would be cutting the tie between the EUR/CHF currency pair.

SECO who revised the growth commented: ‘Foreign trade (contribution of the trade balance) is expected to have a negative impact on growth in Switzerland throughout 2015 as a whole. In light of the steady, albeit weak, economic recovery in Europe and the continued positive expansion of domestic demand in Switzerland, the Federal Government’s Expert Group predicts that Swiss GDP will grow by 0.8% in 2015 (revised from 0.9% forecast in March). An improvement of the situation is expected for 2016 with GDP growth of 1.6% (revised down from 1.8% forecast in March). Since February, the number of unemployed persons in Switzerland has once again risen with the annual average rate of unemployment forecast to reach 3.3% in 2015 and 3.5% in 2016.’

The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending in the region of 1.4564

However, the Swiss Franc doesn’t appear to be getting a break with investors causing it to surge on account of uncertainty in Greece. The nation is attempting to renegotiate its austerity deal with creditors after finding itself in a state of economic collapse under heavy debt burdens. Unemployment is ridiculously high at 26% (in comparison to the UK’s 5.5%) and economic growth is struggling. However, months of talks which have been extremely fruitless have cost the Greek economy further as jobs are lost and companies close under prolonged periods of negotiations and uncertainty.

UK Exists Deflation – GBP Supported against EUR, USD, AUD

Tuesday saw the UK’s inflation data rise from -0.1% to 0.1% in May on the year after the month alone registered 0.2% growth. Additionally, the core gauge was able to climb from 0.8% to 0.9%, but remained a little below the 1.0% estimate.

Exchange Rate Predictions: GBP/CHF Currency Pair Weekly Outlook, Movement Forecast for Safe-Haven Currency

Perhaps one of the most important events for the Franc exchange rate this week with be the Eurogroup meeting on Thursday which could see a spike in safe-haven demand.

SECO spoke on the Greek situation, saying: ‘If an extreme solution were envisaged, the risk and uncertainty relating to the short-term progression of the exchange rate of the Swiss Franc to Euro must be taken seriously.’

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TAGS: Euro Forecasts Euro Pound Forecasts Pound Swiss Franc Forecasts