Swiss Franc (CHF), Swedish Krona (SEK) Exchange Rate Forecast: CHF Gains on Pound, SEK Drops against Euro
Swiss Franc (CHF) Exchange Rate Forecast
The Euro to Swiss Franc exchange rate fell to a low of 1.2063 on Tuesday as investors ditched the common currency in response to poor German ZEW Economic Sentiment measures and an unexpectedly deep decline in Industrial Production in the Eurozone.
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Meanwhile, the Pound to Swiss Franc (GBP/CHF) exchange rate slid to 1.5181 after the pace of UK inflation was shown to have eased to a five-year low.
According to economist Samuel Tombs; ‘Accordingly CPI inflation looks set to dip below 1% later this year, forcing [Bank of England Governor] Mark Carney to write his first letter to the chancellor explaining why inflation is more than 1% adrift from its target.’
Switzerland’s Producer Price Index came in at -0.1% in September, month-on-month, unchanged from August. On the year, producer prices slipped by -1.4%, steeper than the 1.12% figure expected.
Tomorrow the Swiss Franc could experience volatility as a result of the domestic ZEW Expectations survey for October. The index came in at -7.7 in September.
The only other Swiss report to look out for in the days ahead is the nation’s SECO Economic Forecasts for October.
The Pound to Swiss Franc exchange rate is trading in the region of 1.5190.
Swedish Krona (SEK) Exchange Rate Forecast
The Pound may have been flat lining against the majority of its currency counterparts on Tuesday following the publication of disappointing UK inflation figures, but the GBP/SEK exchange rate was able to advance.
The Swedish Krona also declined against the Euro and US Dollar during the European session, with the USD/SEK exchange rate achieving a high of 7.2460 and the EUR/SEK exchange rate rising to 9.1731.
Krona declines were initiated by Sweden’s own below forecast inflation figures. The nation’s inflation rate did advance by 0.2% on the month in September (beating expectations for a decline of -0.1%) but was down -0.4% on the year – steeper than the annual figure of -0.28% forecast.
Persistent deflation in Sweden is causing investors to increase their bets of the nation’s central bank taking action.
According to analyst Olle Holmgren; ‘We had doubted whether the rate cut would come in October or December. Now we feel almost certain that the Riksbank will lower rates in October.’
Before the close of the week additional Swedish Krona (SEK) exchange rate movement could be occasioned by domestic unemployment data. The Swedish unemployment rate is predicted to climb to 7.5% from 7.4%. If that proves to be the case, further SEK losses could be on the horizon.