The Pound Vs Swiss Franc Exchange Rate Lowers As Swiss Industrial Production Contracts Sharply

Published: 20 Oct 2017 21:24 Currency Markets Forex

Pound to Franc exchange rate forecast

Pound to Swiss Franc Exchange Rate Climbs as Recent UK Data Points to Limited ‘Brexit’ Damage on the Economy

Even though Swiss Industrial Production was found to have sharply contracted on the year in the second quarter the Pound to Swiss Franc exchange rate was unable to hold onto its gains on Thursday.

In spite of the headline figure of the CBI Reported Sales report strongly bettering expectations worries remain that the UK economy is being dented by uncertainty stemming from the EU referendum, something that is holding the GBP exchange rate complex down.

A huge budget deficit for the Scottish government has actually helped to boost British Pound to Swiss Franc exchange rate so far today, as it has undermined the chances of Scotland seeking independence.

With public spending clocking in at -£15 billion, twice the size of the UK’s deficit when proportionally-adjusted, many are arguing the Scottish economy is not strong enough to survive on its own, lessening the chances of the UK disintegrating over the Brexit referendum outcome.

Government figures from Scotland have rubbished claims that its budget deficit could prevent it leaving the UK and becoming a separate member of the European Union, further weakening GBP/CHF exchange rates.

Derek Mackay, Scottish Finance Secretary, has claimed that the deficit has been caused by the UK’s economic policy and pointed out that the EU never asked the UK to leave when its deficit was 10% after the financial crisis; 0.5% higher than Scotland’s current deficit.

The Pound (GBP) has made bold moves against the Swiss Franc (CHF) and a majority of its other regular peers over Wednesday, with the 0.4% advance against the Franc equating to a 1.27 figure in the exchange rate.

The Pound has managed to sustain a general rally since Monday, though concerns have been voiced that this current reserve of investor optimism is built on sand.

While the UK’s post-Referendum PMIs plummeted, investors have nonetheless taken interest in the Pound because of a two-year high in manufacturing exports, as well as news of rising shares for housebuilder Persimmon.

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GBP to CHF exchange rate chart

Latest Pound/Swiss Franc Exchange Rates

On Thursday the Swiss Franc to British Pound exchange rate (CHF/GBP) converts at 0.875

The GBP to CHF exchange rate converts at 1.143 today.

The GBP to EUR exchange rate converts at 1.17 today.

The live inter-bank GBP-USD spot rate is quoted as 1.262 today.

NB: the forex rates mentioned above, revised as of 28th Mar 2024, are inter-bank prices that will require a margin from your bank. Foreign exchange brokers can save up to 5% on international payments in comparison to the banks.

Pound Sterling Forecast: CBI Stats due Tomorrow, UK GDP and BoE News on Friday

The rest of the week will still bring notable announcements that could shift the value of the Pound, starting off with tomorrow’s Confederation of British Industry (CBI) distributive trades stats for August.

The forecast has technically been positive, with a shift in store from -14 to -11. Closing off the week will be Friday’s Q2 second estimate for the GDP growth rate, as well as a speech from Bank of England (BoE) official Nemat Shafik.

The GDP result has been forecast positively on both the quarter and the year, while Shafik’s speech is expected to come from the US Jackson Hole Symposium, which could mean that any remarks will not specifically pertain to the UK economy.
Franc to pound sterling exchange rate chart

Swiss Franc Exchange Rates Deteriorate along with Gold Costs as Immigration Issues Emerge

The Swiss Franc has been in a clear state of decline over Wednesday’s trading session, having flopped in almost all of its usual pairings due to concerns about future Swiss involvement in the EU.

As a quasi-member of the EU, Switzerland has tried to have the best of both worlds, most notably when a 2014 referendum saw a slim majority favour immigration quotas. As it stands, however, no formal settlement has been reached, therefore free travel and movement is still in place.

As the UK’s (eventual) exit from the EU has dominated the headlines and thoughts of EU officials, Switzerland seems stuck in limbo once again, having to take its place in the queue of importance while fluctuating gold costs only compound present concerns about the Swiss economy.

Swiss Franc (CHF) Exchange Rate Outlook: Industrial Data due Tomorrow, KOF Indicators Out Next Week

Asides from the sporadic movements in gold prices, the only remaining Swiss news to watch out for this week will come tomorrow, when the Q2 industrial production and orders results are due.

These have been forecast positively in both fields, with respective expected increases being from 1% to 2.4% and from -2.2% to 0.5%.

Looking ahead to the coming week, the KOF economic institute leading indicators for August will be announced, which are expected to show a minor rise from 102.7 to 102.9.

GBP Long-Term Predictions – Pound may Drop if Tide Turns against Post-‘Brexit’ Optimism

The Pound has been undeniably positive of late on optimistic investor action in the wake of supportive UK news for July and August. However, this may ultimately prove to be false hope, resulting in a major GBP dropoff, should further data show a long-term trend towards negativity after the Referendum.

Pantheon Macroeconomics Chief Economist Samuel Tombs has echoed this sentiment, remarking on recent seemingly positive mortgaging data that;

‘Housing transactions, which only edged down in July, have yet to register the full adverse impact of the ‘Brexit’ vote’.

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