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Jonathan Watson



Articles by Jonathan Watson

Pound to Swiss Franc forecast: Will GBP/CHF rates fall below 1.20?

July 18, 2019

The pound to Swiss Franc exchange rate has been on steady decline since May when it peaked at 1.3397. Since then, it has fallen to 1.2245 as Brexit uncertainties continue to weigh on sterling, with the market feeling the prospect of a no-deal Brexit has increased. The franc has also risen in value owing to its status as a safe haven currency, and the continued fears over the global economy.
Swiss Franc enjoying the benefits of its safe haven currency statue
The franc is a safe haven currency which means it will rise and fall in value, according to global attitudes to risk. When there are increased concerns relating to for example war or a global recession, the franc will rise in value. Likewise, in times of global

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What happens next on GBP/CHF exchange rates?

April 16, 2019

The pound to Swiss franc exchange rate has been rather volatile, oscillating in a tight range between 1.2942 and 1.3336 in the last month. There is an expectation that we could see the pound losing further ground with the market bracing for worse news in the future for sterling.
Sterling has somehow managed to remain reasonably buoyant amidst all the political uncertainty that lies ahead. This is principally down to the fact that No-deal is now not possible until October 31st and the market is basking in this minor glory.
On the franc side, the currency has been weaker as investors aim to secure certainty over whether or not the outlook for the European economy is likely to improve or deteriorate in the future

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Pound to Swiss Franc forecast: Will the GBP/CHF rate drop below 1.30?

April 9, 2019

There is a very strong likelihood that the pound to Swiss franc exchange rate might slip should Theresa May find herself in trickier waters ahead as she attempts to negotiate an extension on the Brexit deadline this week. Pound to Swiss franc exchange rates could easily slip below 1.30, particularly since the Franc is a safe haven currency that can strengthen in times of economic uncertainty.
Further troubles ahead for the pound might manifest on Wednesday with the latest industrial and manufacturing data released, showing what is expected to be continued deterioration in the sector. A key factor this week too is UK GDP data, predicted to show meagre growth, just above 0%, as the UK economy looks likely to have

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Pound to Swiss Franc Forecast – Will GBP/CHF rates rise or fall on Brexit?

March 27, 2019

The Brexit date of 29th March has been delayed to the 12th April or the 22nd May as the EU provide a lifeline to the UK to help them avoid a no-deal scenario. This has helped the pound to rise and has provided some of the best rates to buy Swiss Francs in many months.
The outlook for the pound is now looking much less rosy as investors await the latest news on Brexit and to see if the House of Commons will be likely to back Mrs May’s deal. The backing of Theresa May’s exit deal will provide the impetus for the EU to grant an extension to the 22nd May, to give the UK time to prepare the necessary legislation.
Failure to back Mrs May’s Brexit deal will see the EU threaten the UK with a no-deal exit on the 12th April,

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Pound to Swiss Franc Forecast: GBP/CHF rate hits near 1-year high

March 15, 2019

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

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Strong Trade Balance Data Supports the Franc

February 20, 2019

The Swiss Franc has been boosted during early morning trading as investors find the latest Trade Balance data supportive of the economy, with the Trade Balance data coming in showing a surplus of CHF3bn. The strength of the Swiss economy is its exports; in watches, chocolate and specialized industrial engineering. The franc has risen marginally and this could represent a stronger Swiss franc down the line as investors back a stronger economic outlook.
GBP/CHF levels have been flirting with the 1.30 level on uncertainty over Brexit and mixed sentiments on the global financial outlook. As a safe haven currency, the franc will rise and fall in times of global uncertainty. The safety and security of the Swiss banking

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Mark Carney Steadies GBP/CHF Rates on Global Viewpoint

February 13, 2019

– Click to enlarge

The pound to Swiss franc exchange rate has been steadied following comments from Mark Carney during a briefing on the global economy at the Barbican centre in London yesterday. I was fortunate to be in attendance and was struck by Carney’s confident manner, although he highlighted some major risks ahead which would be key for GBP/CHF rates.
Sterling was weaker going into the talks, particularly as Theresa May has once again kicked her plans further down the road in providing a meaningful vote on Brexit by 26th February. Tomorrow in Parliament there will be fresh talks on possible amendments to the current Brexit bill which would see the pound possibly rise down the line.
Swiss Franc’s safe

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GBPCHF rates hit near 3-month highs

January 26, 2019

The Pound to Swiss Franc exchange rate has soared dramatically following a series of revelations in the currency markets and global economy. A big factor is of course Sterling strength, which has arisen on the back of increased feelings that the UK will avoid a no-deal Brexit. This could manifest next week in a Parliamentary vote on whether or not to rule out a no-deal Brexit.
The Pound is much stronger on this news, plus the feeling that Brexit might ultimately be delayed in the future too. Technically, the UK should leave the EU on the 29th March but actually this could now be delayed. This possibility has helped the pound to rise, but for how long will it last?
On the Franc side the expectation of a reduced chance

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Will the SNB raise interest rates?

May 16, 2018

The Swiss National Bank (SNB) could be moving forward in their process of raising interest rates according to current reports with the previous Q4 2019 hike predicted to become reality in Q3. This minor shift in expectations is positive for the Swiss Franc and gives the market some news to be targetting and assessing in deciding the value of the CHF.
With interest rates in Switzerland having been at -0.75% since January 2015, the future guidance could see the Franc strengthening as investors price up the possibility of increased returns. The main reason for cutting rates so low had been to weaken the currency which in the aftermath of the financial crisis and Eurozone instability, had been strengthening dramatically

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