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Pound Sterling Swiss Franc (GBP/CHF) Exchange Rate Slides as Swiss Unemployment Rate Holds Steady

July 9, 2019 - Written by John Cameron

Pound Swiss Franc (GBP/CHF) Exchange Rate Falls as Swiss Unemployment Holds Steady at 17-Year Low

The Pound Sterling Swiss Franc (GBP/CHF) exchange rate slumped and the pairing is currently trading at an inter-bank rate of 1.2388Fr.

The seasonally adjusted Swiss unemployment rate edged down to a better-than-forecast 2.3% in June.

Meanwhile, the non-seasonally adjusted unemployment rate dipped down to 2.1%.

This likely provided the Swiss Franc with an upswing of support as the unemployment rate held steady at its lowest level since April 2002.

Sterling (GBP) Slumps as Brexit Pessimism Hits UK Sales

Meanwhile, data from the British Retail Consortium (BRC) showed that annual UK sales rose at the slowest pace since records began in 1995.

Brexit pessimism has caused consumers to put off non-essential purchases, as average sales growth dipped to 0.6%, the slowest annual growth since records began.

Added to this, Sterling sentiment was further dampened as like-for-like sales plummeted to a disappointing -1.6%.

Commenting on the data, Helen Dickinson BRC Chief Executive stated:

‘Overall, the picture is bleak: rising real wages have failed to translate into higher spending as ongoing Brexit uncertainty led consumers to put off non-essential purchases.

‘The continued risk of a no-deal Brexit is harming consumer confidence and forcing retailers to spend hundreds of millions of pounds putting in place mitigations.’

Safe-Haven CHF Rises Ahead of Relaunched US-China Trade Talks

The safe-haven Swiss Franc rallied against Sterling on Tuesday ahead of trade talks between the US and China continuing after last month's G20 summit.

The two sides are scheduled to relaunch talks after talks broke down in May.

However, reports have revealed that there is little sign the differences that caused the breakdown in the US-China trade deal have narrowed.

Added to this, according to Reuters, unnamed sources revealed that the G20 summit did little to pave the way for negotiators to resolve the issues that caused talk to break down.

Pound Swiss Franc Outlook: Will Higher than Forecast UK GDP Buoy GBP?

Looking ahead to Wednesday it is likely Sterling (GBP) will rise against the Swiss Franc (CHF) following the release of the UK GDP data.

If the UK economy expands more than expected in May, it could provide the Pound with an upswing of support.

Meanwhile, Sterling could gain further support from the UK manufacturing and industrial production data.

If production rebounds and rises higher than forecast in May, the Pound Swiss Franc (GBP/CHF) exchange rate could rise.

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TAGS: Pound Swiss Franc Forecasts

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