A week of PMI data for GBP/CHF
The UK was the main driver this week between the two economies with the Swiss economy fairly thin on the ground in terms of data releases. We had construction, services and manufacturing PMI from the UK, with only construction improving on forecasts posting a revised figure of 55.9.
The mixed results from the UK continue to highlight the uncertainty surrounding the UK economy, with no improvement on GDP figures last week these eco stats are currently holding the UK back from any notion of a rate hike this year.
Manufacturing PMI from Switzerland improved on forecasts with a reading of 49.4 on last month’s figure.
A fairly subdued week between GBP/CHF beginning the week at 1.4366 reaching a high of 1.4444 before tailing back off and ending Thursday’s session at 1.4354. Sterling has been on the back-foot with mixed eco-stats and the continued situation in Greece triggering franc demand.
Swiss Franc overvalued
On Saturday SNB President Thomas Jordan continued his rhetoric that the franc is currently overvalued and that if need be the SNB is willing to intervene in the markets to influence the currency.
Further rate cuts could be on the horizon depending on the global situation however, with the Eurozone beginning to show slight improvements the Swiss may have done enough to protect itself from further cuts.
There is little to finish the week off with only foreign currency reserves for the franc released tomorrow which is a great indicator as to how active the SNB have been in the currency markets. Next week there will be manufacturing production figures from the UK and CPI data from Switzerland. G7 meetings will be taking place all week and the continued developments of the Greek situation will continue to add volatility to the markets.