Pound Swiss Franc (GBP/CHF) Exchange Rate Edges Highers as UK Supreme Court Rules Commons Prorogation Unlawful

September 24, 2019 - Written by John Cameron

STORY LINK Pound Swiss Franc (GBP/CHF) Exchange Rate Edges Highers as UK Supreme Court Rules Commons Prorogation Unlawful

GBP/CHF Exchange Rate Rises, Conservative Government under Pressure to Avoid No-Deal Brexit

The Pound Swiss Franc (GBP/CHF) exchange rate rose by around 1.233Chf following the UK Supreme Court’s ruling of Prime Minister Boris Johnson’s suspension of the House of Commons as unlawful, or ‘justifiable’.

As a result, the Pound rose against the Swiss currency as this now poses more pressure on the Conservative Government to avoid a no-deal Brexit.

John Bercow, the House of Commons Speaker, has meanwhile called for Parliament to reconvene as early as tomorrow, allowing opposition MPs to challenge Boris Johnson’s hard-Brexit stance ahead of the October 31 Brexit deadline.

Mr Johnson, however, has remained unmoved on the UK’s leaving the EU next month, saying:

‘I must say I strongly disagree with the [court’s] judgment, and we in the UK will not be deterred from getting on and delivering on the will of the people to come out of the EU on 31 October, because that is what we were mandated to do.’

In UK economic news, today saw the publication of August’s public sector net borrowing which rose to a weaker-than-expected £5.766 billion, although this left the GBP/CHF exchange rate unmoved as political developments have remained in focus.

CHF/GBP Exchange Rate Sinks despite Resilient Swiss National Bank

The Swiss Franc (CHF) has failed to gain on the Pound today despite Switzerland’s National Bank (SNB) holding back its monetary policy despite global central banks taking a more dovish turn last week.

Jane Foley, Head of Currency Research at Rabobank, recommended caution, however:

‘The SNB have had their fingers burnt before. The biggest thing that would allow the Swiss franc to weaken would be an increase in the growth rate and risk appetite in the [E]urozone.’

However, with the Eurozone struggling with Brexit and a flagging German economy, and the US-China trade uncertainty, we could see the safe-haven Swiss Franc quickly claw back some of its losses against Sterling.

GBP/CHF Outlook: Sterling Could Rise if No-Deal Brexit is Challenged

Swiss Franc investors will be looking ahead to tomorrow’s release of September’s Swiss ZEW survey of business expectations. Any signs of improvement could see the CHF/GBP exchange rate begin to edge higher.

Sterling traders, meanwhile, will be looking to tomorrow’s publication of August’s BBA mortgage approvals figure.

The GBP/CHF exchange rate could hold onto some of today’s gains if the Conservative Government is challenged on its hard-Brexit stance in the newly reopened Parliament tomorrow.

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TAGS: Pound Swiss Franc Forecasts Swiss Franc Forecasts