Poor GDP Leaves GBP High and Dry against Peers Today
Sterling made fractional gains against the Swiss franc recently, though not by its own virtues.
The recent losses recorded in the GBP-CHF exchange rate appear to have mainly been caused by resource costs.
Although the cost of gold per 100 ounces previously rose supportively, the commodity price has dived once again today, hitting a low in the region of $1210.
Bettering expectations, the latest GfK Consumer Confidence Survey unexpectedly rose from -3 to -1 to suggest that referendum uncertainty within the UK economy could be easing.
With markets taking a largely cautious approach ahead of the latest US data this allowed the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate to regain some of its lost ground.
The Pound has been reduced in appeal significantly today, with losses coming in sizable amounts against most peers. Although GBP has edged up against the Franc, this is something of an exception.
The only UK data out today has also been the week’s most impactful UK contribution overall, with second preliminary GDP results for Q1 falling on the year and remaining at 0.4% on the quarter.
The news painted an alarming picture for the UK economy, on account of the fact that the services sector was shown to be holding up an even greater part of the economy than before.
Here are today’s CHF fx rates
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.
The pound conversion rate (against euro) is quoted at 1.161 EUR/GBP.
The live inter-bank GBP-USD spot rate is quoted as 1.237 today.
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.
Limited UK Data may Leave GBP-CHF Rate Unchanged Tomorrow
While today has brought with it major UK ecostats, the last day of the week is not expected to provide anything so impactful.
Most notable among the coming week’s announcements will be Wednesday’s mortgage and lending data, as well as the Nationwide house prices results for May.
The coming Thursday will bring the UK’s construction PMI for May, while June 3rd will see the announcement of the all-important national services PMI for the same month.
Swiss Franc Mixed in Appeal as Rising Commodity Prices Conflict with Possible National Income Plans
The perceived value of the Swiss Franc has been generally poor recently on account of positive domestic data clashing with a potentially momentous decision due in the near-future.
On the positive side, the cost of gold per 100 ounces has risen, while the UBS consumption indicator has risen along with the ZEW economic sentiment index for May.
Less stabilising has been the effect of the impending referendum on June 5th, which is being held to determine whether a world-first basic income scheme should be introduced to provide around 2,500 Francs to every citizen.
Incoming Swiss Data to Cover Payrolls and Indicators
Only one remaining piece of Swiss data is due this week, which is expected to cover non-farm payrolls in the first quarter. Forecasts have been for a slight rise.
Following on from this in the coming week will be the KOF leading indicators result for May, as well as the current account printing for Q1.
Additionally, Wednesday will bring with it the announcement of the GDP growth rate result for Q1, which has been forecast to rise on the quarter and the year.
Swiss Musing on National Income Highlights Overall Wealth of the Nation
Although forecasts have been for the national income referendum to result in a rejection of the concept, the fact that the nation is capable of having such a vote in the first place makes it clear how wealthy Switzerland is overall.
As former Greek Finance Minister Yanis Varoufakis points out:
‘A rich country like Switzerland has the great opportunity to try out this great experiment.’