Tag Archives: Swiss Franc

With the ECB and the Fed both signalling their readiness to provide further stimulus, the Swiss National Bank is unlikely to have smooth sailing over the coming months. How the Swiss National Bank (SNB) reacts to further stimulus by its US and European counterparts will be the key focus of the coming months for investors. We believe that the Swiss central bank will be reluctant to cut rates in direct response to the...

With the ECB and the Fed both signalling their readiness to provide further stimulus, the Swiss National Bank is unlikely to have smooth sailing over the coming months.How the Swiss National Bank (SNB) reacts to further stimulus by its US and European counterparts will be the key focus of the coming months for investors. We believe that the Swiss central bank will be reluctant to cut rates in direct response to the ECB, especially in the case of a small 10 basis point deposit rate cut by the...

Even should global economic momentum stabilise in the coming months and political risks abate, the franc still has important structural underpinnings. The Swiss franc has been supported by a structural current account surplus and by reduced investment flows out of Switzerland since the 2008 financial crisis. In addition, the decline in global yields since the Fed’s dovish shift early this year has rendered interest...

Even should global economic momentum stabilise in the coming months and political risks abate, the franc still has important structural underpinnings.The Swiss franc has been supported by a structural current account surplus and by reduced investment flows out of Switzerland since the 2008 financial crisis. In addition, the decline in global yields since the Fed’s dovish shift early this year has rendered interest rate differentials less unfavourable to the franc.The upward pressure on the...

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...

- 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...

GBP/CHF forecast: Brexit uncertainty causes Swiss Franc to gain vs the Pound The Pound is now trading at its lowest level to buy Swiss Francs in over twelve months as the political uncertainty surrounding the UK is continuing to negatively affect the value of Sterling exchange rates. Clearly the uncertainty of what may happen in the next three months before the end of March is causing investment in the UK to drop off...

Swiss Franc Coins - Click to enlarge In today’s GBP/CHF forecast we look at why the Pound has been coming under a huge amount of pressure recently against the Swiss Franc. Those that have been following the currency markets will be aware that the pressure on GBP is largely owing to the uncertainty caused by the ongoing Brexit talks. We are now just over a week away from arguably one of the biggest events in British...

Home to just 0.1% of the world’s population, Switzerland accounts for 1.8% of the top 1% of global wealth holders (Keystone) Despite a slight decline in fortunes, the Swiss still enjoy the highest mean wealth per adult, according to the 2018 Credit Suisse Global Wealth Report. The reportexternal link, released on Thursday, estimated the average fortune of a Swiss adult to be $530,240 (CHF527,707) compared to $537,600...

Sometimes, one just needs to look in the right place. And often in those cases, it just takes a conversation to alert one where to look. We had a call with a Swiss company this week, to discuss gold financing for their business. They reminded us that there is a negative interest rate on Swiss francs. And then they said that a swap of francs for gold has a cost. That is, the CHF GOFO rate is negative (the dollar based...