Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Soften as Swiss Trade Surplus Rises
Swiss Money Supply data is due to be published this morning but the report is unlikely to have as much of an impact on British Pound to Swiss Franc exchange rate movement as the UK's public finance data. A disappointing report could push the Pound lower against its major currency counterparts in the hours ahead.
Earlier...
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate declined by around -0.4% on Thursday afternoon. Although British Retail Sales data produced comparatively positive results, the Pound declined versus the majority of its most traded currency competitors. This was mostly due to the fact that previous retail sales figures were negatively revised, but also the fact that Retail Sales including Auto Fuel failed to meet with expectations.
A quick foreign exchange market summary before we bring you the rest of the report:
On Friday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
At time of writing the pound to pound exchange rate is quoted at 1.
Today finds the pound to canadian dollar spot exchange rate priced at 1.708.
Today finds the pound to australian dollar spot exchange rate priced at 1.912.
The live inter-bank GBP-USD spot rate is quoted as 1.25 today.
Please note: the FX rates above, updated 26th 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.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.5080.
In response to Swiss Trade Balance data, the Franc appreciated versus many of its currency rivals. July’s Trade Balance advanced to 3.74 billion from 3.51 billion in July. Exports declined by -1.7% on the month but imports declined by -2.5% on a monthly basis in July. The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate was trending within the range of 1.5017 to 1.5164 during Thursday’s European session.
Euro to Swiss Franc (EUR/CHF) Exchange Rate Forecast to Rally after Greek Secures Bailout Funds
The Euro to Swiss Franc (EUR/CHF) exchange rate advanced by around 0.5% on Thursday afternoon. After many months of battles, negotiations and uncertainty; Greece has finally secured its third bailout package. The European Stability Mechanism (ESM) immediately sent the Hellenic nation funds which allowed Greece to meet its financial obligations to the European Central Bank (ECB). The Euro appreciated in response to this news, although the uptrend has been somewhat sluggish given most traders expected the Euro-area nations to accept the terms of the bailout.
The Euro to Swiss Franc (EUR/CHF) exchange rate is currently trending in the region of 1.0783.
Swiss giant UBS predicts more Franc weakness to come as trader risk-appetite returns. Predictions that the Federal Reserve will hike the cash rate within 2016 will also see the Franc weaken. In addition, the Swiss National Bank (SNB) signalled that the recent balance sheet expansion went beyond its comfort level, while the financial industry in Switzerland is burdened by negative interest rates. The Euro to Swiss Franc (EUR/CHF) exchange rate was trending within the range of 1.0710 to 1.0793 during Thursday’s European session.
US Dollar to Swiss Franc (USD/CHF) Exchange Rate Forecast to Soften on Mixed US Data Results
The US Dollar to Swiss Franc (USD/CHF) exchange rate declined by around -0.3% on Thursday afternoon. US economic data produced a mixed bag of results on Thursday which caused the ‘Greenback’ (USD) to decline versus most of its currency rivals. Of particular disappointment was an unexpected rise in Initial Jobless Claims which caused many traders to question the likelihood of a September rate hike.
The US Dollar to Swiss Franc (USD/CHF) exchange rate is currently trending in the region of 0.9630.
Looking ahead, a lack of Swiss economic data on Friday is likely to see the Franc subject to movement as the result of market sentiment. July’s M3 Money Supply is unlikely to have a significant impact on Swiss Franc trade. Gold prices may also have an impact which is forecast to rise on delayed Federal Reserve rate hike bets. The US Dollar to Swiss Franc (USD/CHF) exchange rate was trending within the range of 0.9588 to 0.9672 during Thursday’s European session.
FX News Now: UBS Predicts Franc Weakness as Market Sentiment Improves
‘We expect that more and more investors will increase their risk taking in the currency market and the Swiss franc is one of the best funding currencies for such trades currently. The two-year US Treasury rates have risen to 0.75%, while Swiss government bond rates remained below -0.80%. Such a yield differential is attractive for carry trading, and with the Fed rate hike coming closer we would also expect carry traders to become more confident of building such positions, which should weaken the CHF. We think the depreciation risk is limited, since the monetary policy mix is not sustainable in the long-term. The SNB has signalled that the recent balance sheet expansion went beyond its comfort level, while the financial industry in Switzerland is burdened by negative interest rates. Any stronger depreciation of the CHF will therefore raise expectations that the SNB will hike rates and that it will limit such a depreciation.’