“GBP is up, but gains stall against CHF as BOE minutes dampen idea of interest rate hike”

GBPCHF is traditionally a low volatility currency pair, as GBP is relatively stable and the CHF is sought for its relative safety by investors due to its influx of wealth individuals looking to safe guard their funds.

Recently the Pound has been strengthening against all majors for the reasons highlighted below.

There has been speculation that the (BOE) Bank of England would reveal a shift in monetary policy by at least one of the members of the MPC, voting in favour of an interest rate rise. However, this proved not to be the case, as all 9 members voted to keep interest rates at the record low of 0.5% at the most recent vote yesterday. The Bank stated that “employment had continued to increase robustly, although wage growth had been surprisingly weak.

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Over the last 4 months GBP has been strengthening against the CHF and has traded between 1.4600 and 1.5400, due to this speculation of an interest rate rise. With the pound likely to continue its run of good form we may see a test of resistance at 1.54. CHF buyers should be in touch to discuss their requirements as quickly as the rate can rise, we could see a retraction if Mark Carney dampens the idea of interest rate rises this year.

For a consultation on any currency cross contact me on the details below.

Sam Edmanson

Currency Broker

The Foremost Currency Group

Making the most of your currency

 +44 (0) 1442 892060