Swiss Franc (CHF) Exchange Rate Lower against British Pound, Higher against US Dollar and Euro
While the Swiss Franc fell against the Pound (CHF-GBP) exchange rate on Thursday as Sterling rallied in response to positive UK data, the European currency was trending in a stronger position against several of its peers as its position as a safe-haven asset appeared to be restored amid the turmoil in Greece.
After the Swiss National Bank removed its Swiss Franc/Euro cap, the Franc plummeted across the board, but the appeal of the currency has improved thanks to the uncertainty caused by ongoing Greek bailout negotiations.
A quick foreign exchange market summary before we bring you the rest of the report:
On Friday the Euro to British Pound exchange rate (EUR/GBP) converts at 0.856
The GBP to EUR exchange rate converts at 1.168 today.
Today finds the pound to pound spot exchange rate priced at 1.
FX markets see the pound vs us dollar exchange rate converting at 1.245.
Please note: the FX rates above, updated 19th Apr 2024, will have a commission applied by your typical high street bank. Currency brokers specialise in these type of foreign currency transactions and can save you up to 5% on international payments compared to the banks.
As stated by strategist Lee Hardman; ‘The Franc is still seen as one of the safe-haven currencies of choice, despite the SNB. [Markets have returned to] the traditional role of the Franc benefiting when concerns of a Greek default rise’
Pared US Rate Bets See CHF/USD Rise, CHF/EUR in Narrow Range
The Swiss Franc was able to gain on the US Dollar on Thursday as yet more less-than-impressive US reports increased the odds of the Federal Open Market Committee delaying an interest rate increase until either the end of this year or the beginning of next. The US Markit Manufacturing PMI was one of the reports weighing on rate bets. It showed an unexpected decline in output in May.
Markit economist Chris Williamson noted; ‘Manufacturers reported their weakest growth since the start of 2014 in May, with the survey results adding to fears that the strong dollar is weighing on the US economy and hitting corporate earnings. Although falling only modestly, export sales have now dipped for two straight months, something not seen for two years and a far cry from the solid export performance seen this time last year. Overall order books are consequently growing at the slowest rate seen since the start of last year’
The minutes from the last Federal Open Market Committee (FOMC) meeting were also fairly dovish in tone and implied that very few policymakers felt that interest rates should be revised at the present juncture. The CHF/EUR exchange rate prepared to close out the European session trending in a narrow range despite the release of largely disappointing Manufacturing/Services data for Germany. Hopes that Greece will soon reach an accord with its creditors (simply because the nation has no other choice but to compromise if it wants to receive emergency bailout funds) helped the Euro recover earlier losses.
The CHF/USD exchange rate was trading in the region of 1.0698Pound to Swiss Franc Exchange Rate (GBP/CHF) Falls, Swiss Growth Data Ahead
Although the Franc was trading higher against the US Dollar and in a narrow range against the Euro, the currency declined against the Pound on Thursday as the UK’s retail sales report showed a significant increase in consumer spending.
Next week there are several Swiss reports with the potential to inspire Franc movement, including Wednesday’s UBS Consumption Indicator, Thursday’s trade balance stats and Friday’s first quarter growth numbers.
The Swiss Franc to Pound Sterling (CHF/GBP) exchange rate was trading in the region of 0.6821
Before the weekend further Swiss to US Dollar (CHF/USD) exchange rate movement could occur in response to the US inflation numbers.
Investors with an interest in the CHF/GBP exchange rate will also be focusing on the UK’s public spending data.