Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Edges Lower, Traders Focus on ECB
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate edged lower by around -0.15% on Thursday morning.
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With trader focus set firmly on the forthcoming policy decision from the European Central Bank, market volatility cooled. The Swiss Franc edged a little higher versus many of its major peers thanks to speculation that severing ties with the shared currency will be beneficial if the ECB shocks with a particularly aggressive stimulus programme.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.3039.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate plummeted by around -1.70% on Wednesday morning.
In the aftermath of the well-documented Euro cap removal by the Swiss National Bank (SNB), the Franc continues to appreciate versus its major peers. With the European Central Bank (ECB) set to use expansive measures in order to shore up the flagging Eurozone, the newly severed ties with the shared currency is Swiss Franc supportive.
The Pound Sterling, meanwhile, dived versus nearly all of its most traded rivals after minutes from the Bank of England’s (BoE) latest policy meeting revealed a unanimous vote to hold the current ultra-low benchmark rate.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is currently trending in the region of 1.3020.
Pound Sterling (GBP) Exchange Rate Dives despite Positive Data
Although Wednesday’s British labour market data produced relatively positive results, the Pound slumped versus the majority of its most traded competitors. This can be attributed to minutes from the BoE’s most recent policy meeting revealing that all of the policymakers were unanimous on wishing to hold the rate. This is a change from the past few meetings in which two of the policymakers dissented from the general consensus.
‘For the two members who had voted in the previous month for an increase in Bank Rate, the decision this month was finely balanced,’ the minutes said.
British data printed reasonably positively, although it has had minimal impact as the BoE minutes overshadowed domestic data. Employment Change failed to meet with the market consensus of an additional 74,000 jobs, with the actual data only showing growth of 37,000.
However, the Unemployment Rate dropped beyond the median market forecast of a fall from 6.0% to 5.9%, with the actual data sliding to 5.8%. Jobless Claims Change managed a positive declination and Average Weekly Earnings met with the forecast increase from 1.4% to 1.7%.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate dropped to a low today of 1.3057.
Swiss Franc (CHF) Exchange Rate Gains on Euro Cap
Almost a week after the SNB shocked the world with its Euro cap removal; the Franc continues to gain versus its major peers. Given that the majority of market experts expect the ECB to begin a programme of quantitative easing on Thursday, the newly severed ties with the shared currency is seeing heightened demand for the Franc.
Swiss data printed relatively disappointingly on Wednesday, but this had minimal impact on the Franc with the fallout from the SNB decision dominating trader focus. Money Supply M3 declined from 3.6% to 3.3%, and the ZEW Expectations Survey dropped from -4.9 to -10.8.
Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast to Hold Losses
Given the mounting negative sentiment towards the BoE after yet more dovish action from policymakers, and the lack of influential data to provoke changes, the Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is likely to hold losses on Wednesday.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate climbed to a high today of 1.3300.