CHF Down as Pound Sterling Spot Rate Rallies Following UK Budget Statement
Next Week’s Swiss Franc to Pound Forecast
The Swiss Franc to Pound exchange rate is currently trending in the region of 0.6454, down 0.2 per cent on the day’s opening levels.
Investors with an interest in the Swiss Franc will now be looking ahead to next week and the publication of Swiss growth and inflation data.
A stronger rate of expansion or an increase in consumer price pressures may give the Franc a lift against peers like the Pound, Euro and US Dollar.
Currency Newsflash: GBP to CHF Steady Despite Swiss Production Flop
The <a href="/British-Pound-GBP-currency-table.html">Pound Sterling</a> to Swiss Franc (GBP-CHF) exchange rate was trending in the region of 1.5458 on Thursday, little changed on the day’s opening levels. Swiss Production data had little impact on the pairing, despite showing sharp declines.
Industrial production fell by -5.1% on the year in the third quarter, down from -2.1% in the second quarter, while Industry & Construction Output dropped -3.1% following the second quarter’s -2.2% result.
Production Data Forecast to Impact Pound to Swiss Franc Spot Exchange Rate
As the week continues the Swiss Franc to Pound Sterling (CHF-GBP) and Swiss Franc to US Dollar (CHF-USD) exchange rates could fluctuate in response to Swiss data.
The reports to be aware of before the weekend are the nation’s Industrial Orders and Industrial Production figures for the third quarter.
Industrial Production is believed to have fallen by -1.3% on the year, an improvement on Q2’s figure of -2.5%.
The Swiss Franc to Pound Sterling (CHF-GBP) exchange rate declined today as the British currency was boosted unexpectedly by the UK’s autumn budget statement.
It had been predicted that the Pound would post broad-based declines following the announcement so the fact that Sterling emerged from the statement stronger was something of a surprise.
The currency had previously been pressured lower by mixed interest rate related commentary from several key Bank of England (BoE) officials.
The CHF to GBP exchange rate hit a low of 0.6465 today
A quick foreign exchange market summary before we bring you the rest of the report:
On Monday the Pound to British Pound exchange rate (GBP/GBP) converts at 1
Today finds the pound to pound spot exchange rate priced at 1.
The live inter-bank GBP-EUR spot rate is quoted as 1.167 today.
FX markets see the pound vs us dollar exchange rate converting at 1.256.
NB: the forex rates mentioned above, revised as of 6th May 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.
UK Growth Forecast Boosted, GBP Gains on CHF, EUR Today
On Tuesday the Pound softened as the BoE’s chief economist once again intimated that borrowing costs are just as likely to fall as rise. The central bank’s governor, who also spoke on Tuesday, also failed to support UK rate hike expectations and put Sterling under pressure in the process.
However, GBP staged a rebound on Wednesday as Chancellor George Osborne unexpectedly bolstered the Pound by increasing the government’s forecast for 2016 UK growth.
As stated by Bloomberg; ‘Sterling climbed for the first time in four days against the Dollar, having slipped on Tuesday to a two-week low. The UK economy will grow by 2.4% this year and in 2016, Osborne said on Wednesday as he set out his spending priorities for the next five years. The forecasts, by the Office for Budget Responsibility, compare to July growth predictions of 2.4% this year and 2.3% next.’
CHF-EUR Conversion Rate Newsflash: Euro Struggles Amid ECB Stimulus Speculation
After gaining earlier in the week as a result of better-than-forecast ecostats for Germany and the Eurozone, the Euro was struggling to hold ground against peers like the Swiss Franc and Pound on Wednesday, with the CHF-EUR currency pair fluctuating and the EUR-GBP exchange rate tumbling.
While developments in Greece (including a bomb blast and political upheaval) kept the Euro on the back foot, the prospect of the European Central Bank (ECB) expanding stimulus before Christmas remains the biggest headwind to Euro strength.
Today the ECB warned of the vulnerability of emerging markets. In its latest financial stability report the ECB commented;
’Vulnerabilities stemming from emerging markets are increasing. Highly indebted foreign-currency borrowers may be vulnerable to a prospective normalisation of financial conditions in the US and other advanced economies.’
The CHF-EUR exchange rate was trading in the region of 0.9222
CHF-USD Exchange Rate Tumbles on 2015 US Rate Hike Hopes
The Swiss Franc gained on Tuesday as the downing of a Russian plane by Turkey triggered a bout of risk-aversion and saw investors flock to traditional safe-havens.
However, with Wednesday’s US Durable Goods Orders report showing a much stronger-than-forecast gain in October the US Dollar trampled the Swiss Franc during the local session.
Durable Goods Orders were shown to have increased by 3.0% in October, up from a positively revised decline of -0.8% in September. Such a strong result is sure to bolster expectations that the Fed will increase borrowing costs in December.
According to AP Economics Writer Martin Crutsinger;
The strength was led by a surge in demand for commercial aircraft but reflected gains in a number of categories, from machinery to computers. A key category that serves as a proxy for business investment spending rose 1.3% in October, the best showing since July.’
Other US reports were more mixed, with Personal Consumption Expenditure holding steady and the level of continuing jobless claims rising.
The day’s only Swiss report, the nation’s UBS Consumption Indictor for October, came in at 1.6 – a slight improvement on the previous reading of 1.56.
FX Newsflash: The CHF-USD exchange rate was trading in the region of 0.9764