It is now very close to the best time to buy Swiss Francs with pounds since May 2018. The stronger pound and a reduced global risk appetite has seen the move on the GBP/CHF pairing. This is presenting a much improved opportunity to buy Swiss Francs with pounds. Any client wishing to buy or sell on this pairing might benefit from a quick review with our team to best understand what is next, and the potential outcomes.
Pound to Swiss Franc Forecast: Brexit key driver for GBP/CHF
A key driver on this pairing is of course the latest news on Brexit. Unbelievably we are now only 2 weeks away from the Brexit date of 29th March, this could be a very interesting time in the currency markets Sterling has risen on the back of the latest news that no-deal is now much less likely.
The prediction is that there could be an extension announced this evening too, the UK Parliament will now vote on the premise that the UK will seek to extend Article 50. This prospect could be sterling positive as like last night’s news, it makes a no-deal less likely.
Sterling could rise further and GBP/CHF levels could retest the post EU vote highs of June 2016 in the mid 1.38’s. There is a growing belief the UK could leave without a no deal and this is also benefiting those buying Swiss Francs, since the reduced global appetite for safe haven assets like the Franc, has weakened it.
The reduced fears over a costly Trade Wars outcome between the US and China has also weakened the Franc, this will only potentially help GBP/CHF buyers in the future if as rumoured, the US and China could be getting close to reaching an agreement.
The next 2 weeks are likely to be pivotal for the GBP/CHF rate. If you have a position to buy or sell the pair then you might find a review with our expert team beneficial to help you with some information as to the best strategy to consider.
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