In times of global economic turmoil funds flood into the relative safety of stable currencies like the USD, CHF and YEN. With instability in the Middle East continuing, the CHF has continued to strengthen against the pound. Technical levels for GBPCHF remain at 1.5000 support and resistance at 1.5400. When the US bombing campaign in northern Iraq was first announced earlier in the month, GBPCHF took an immediate hit with the CHF strengthening close to 1.5000 presenting a golden opportunity for CHF sellers to claw back some of the gains they have lost recently off the back of GBP strength. Although it seems the unreliable and indecisive Mark Carney has all but ruled out a UK interest rate hike this year, GBP seems to be retaining its strength across the board.
Contact the author of this blog, Sam Edmanson on 01442 892060 quoting the CHF blog.