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Brexit vote to dominate Pound to Swiss Franc exchange rates

Brexit vote to dominate Pound to Swiss Franc exchange ratesPound to Swiss Franc exchange rates

The value of the Pound against the Swiss Franc has remained in a fairly tight range since the start of the year. However, in the last couple of days the Pound has made some small gains after the Swiss National Bank confirmed that their currency reserves have dropped slightly.

We have also seen reports of positive sales of Swiss watches, which is one of Switzerland’s largest exports. According to official reports Swiss exports hit 3.9% and are now over CHF 2 billion, which does not often happen.

The Swiss market has seen the benefit of an increase in demand from the US which has been on a very positive course of expansion during last year, with 4 interest rate hikes in 2018 for the world’s leading economy.

With potentially another 3 interest rate hikes in the US due to take place this year we could see further CHF strength as this would suggest that the US economy continues to grow and therefore demand for Swiss exports will continue to increase.

What impact will the Brexit vote have on Pound to Swiss Franc exchange rates?

Turning the focus to what is happening in the UK we are just days away from the next anticipated Brexit vote. In December the vote was cancelled for fear of it not getting passed. Could we see the same thing happen again next week?

Clearly, if the Brexit vote does get delayed this could cause problems for the Pound as it means we are getting closer and closer to the date when the UK is due to officially leave the EU, on 29th March.

At the moment the expectation for the Brexit vote to take place is 15th January so any change or delay could result in uncertainty for the Pound and therefore could we see the Pound dropping again?

In the unlikely event that the vote gets passed this could see the Pound rally against the Swiss Franc as this will at least see the UK move on from the Brexit issue and therefore this might encourage global investment to return back to the UK. If this happens this could see the Pound gain vs the Swiss Franc.

To find out more or for a free quote when buying Swiss Francs with Sterling please contact me directly using the form below. I look forward to hearing from you.

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Tom Holian
Tom Holian is Dealing Director at Foreign Currency Direct plc. and publishes FX comments on
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