Political uncertainty & Brexit cause sterling weakness
The pound’s value is being predominantly dictated by Brexit. Over the past month sterling has gradually declined in value against the Swiss franc. There is potential for further falls for the pound due to the lack of clarity surrounding Brexit and the leadership battle for the new Conservative leader.
There are candidates for the role of Prime Minister who have stated they are willing to bring a no deal scenario back to the table in a bid to get a better deal from Brussels. A no deal scenario is the investor’s biggest fear and if the probability of a no deal increases you would expect the Sterling to weaken. The threat of Britain leaving the EU with no deal is

Brexit Limbo
At present Theresa May is in talks with Jeremy Corbyn in order to try and come up with a mutually acceptable deal to put to Brussels. The problem is May can’t even get a deal that is acceptable within her own party let alone Labour as well.
Her deal has been rejected three times and Brussels are stone walling us on the Irish border. Brussels have reiterated there will be no changes to the deal on the table yet May continues to try and gain concessions.
I believe Brussels are making the UK’s exit from the EU very difficult. If the UK were to gain decent terms and leave in a quick fashion it could encourage other countries to follow suit, creating a domino effect. Brussels would like to avoid anything

Pound to Swiss Franc rates
We have seen a fairly stagnant market following the Brexit extension until 31st October. Although a key factor on GBP/CHF economic date releases will now gain back some of their impact.

Yesterday saw the ease of House Price Growth data and figures dropped to a six year low. The average house price of across the UK grew by 0.6%, but property prices in the capital fell by 3.8%.

The lack of clarity surrounding Brexit is being labelled as the main catalyst. International and domestic investment is slowing and banks are more reluctant to hand out riskier mortgages.

UK inflation was released yesterday and remains at 1.9%. The Office of National Statistics (ONS) stated the