Currency News

Daily Exchange Rate Forecasts & Currency News

Pound to Swiss Franc (GBP/CHF) Exchange Rate Dips as UK Markets Eye Brexit Developments

September 2, 2020 - Written by John Cameron

GBP/CHF Exchange Rate Falls as Hopes for a UK-EU Post-Brexit Deal Slide


The Pound to Swiss Franc (GBP/CHF) exchange rate fell by -0.2% today, with the pairing currently fluctuating around 1.216Fr.

Sterling fell against the Swiss Franc (CHF) today as Brexit uncertainty continues to hold back the currency’s gains. This follows yesterday’s meeting between Michel Barnier, the EU’S Chief Negotiator, with his British counterpart, David Frost.

However, owing to a lack of clear developments towards a post-Brexit trade deal between the UK and the EU, GBP investors have become increasingly concerned over the increasing likelihood of a no-deal Brexit on December 31st.

In UK economic news, today saw August’s release of the Nationwide Housing Prices figure, which soared to record highs from 1.8% to 2%.

David Thomas, Barratt’s chief executive, was cautious however, saying that these figures were due to ‘very strong consumer demand’ and that the shortage of new houses would support the market.

Meanwhile, Robert Gardener, the Chief Economist at Nationwide, said that it had been an ‘unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions’.

Swiss Franc (CHF) Edges Higher as Optimism Remains in Swiss Economy


The Swiss Franc (CHF) edged higher today as Switzerland’s economy continues to remain one of the strongest in the world, despite being one of the most heavily-hit nations by the Covid-19 pandemic.

Advertisement
Recently the insurance company Swiss Re said that, for the third year in a row, Switzerland had remained top of the global ranking, ‘reflecting their comprehensive economic strength against future crises.’

Analysts at Bloomberg, however, were more cautious, saying last week:

‘Still, Switzerland is in a deep recession, with consumer spending down 8.6% in the second quarter, and equipment investment plunging almost 12%. Manufacturing shrank 9%. The economy is forecast to contract roughly 6% this year.’

GBP/CHF Outlook: Could Sterling Sink on Lack of Brexit Progress?


Swiss Franc (CHF) investors will be looking ahead to tomorrow’s release of August’s Swiss Consumer Price Index for August. Any improvement in Switzerland’s inflation gauge could spark optimism in the nation’s economic recovery and boost the CHF/GBP exchange rate.

Pound (GBP) traders will be looking ahead to tomorrow’s release of August’s UK Services PMI. Any improvement in the UK’s largest sector would prove GBP-positive.

The GBP/CHF exchange rate will remain sensitive to Brexit developments this week. As a result, we could see Sterling continue to fall if informal talks between the EU and UK Chief Negotiators fails to show any marked progress towards a possible trade deal.

Like this piece? Please share with your friends and colleagues:

International Money Transfer? Ask our resident FX expert a money transfer question or try John's new, free, no-obligation personal service! ,where he helps every step of the way, ensuring you get the best exchange rates on your currency requirements.


TAGS: Pound Swiss Franc Forecasts Swiss Franc Forecasts

Comments are currrently disabled