The UK pound (GBP) to Swiss franc (CHF) is a frequently traded cross currency pair. The pound is the fourth most traded currency worldwide while the Swiss franc is the fifth. It is referred to as a cross currency pair due to the absence of the US dollar. The pair is most actively traded in the early morning UK time on weekdays when key economic data is reported. In the GBP to CHF pairing the pound is the base currency and the Swiss franc is the quote currency. This means that at current prices it takes 1.185 CHF to buy one GBP.
Trade British Pound / Swiss Franc CFD
The pound to Swiss franc forecast is based mainly on global risk sentiment and the outlook for the UK economy. The pair is currently trading in the lower bound of the 52-week range and analyst sentiment is that in the short term there is the possibility of continued downside pressure.
As the European economies, including Switzerland, are cautiously reopening, the investor risk appetite is growing, boosting demand for riskier assets. The Swiss Franc is trading at its weakest level in 7 weeks as safe haven assets are gradually going out of favour.
Meanwhile, the British pound is trading higher than its peers, as the UK Prime Minister contemplates next steps in the fight against the Covid-19 pandemic. With coronavirus statistics improving, Boris Johnson has to lay out the UK’s strategy to exit the lockdown. A cautious approach to gradual reopening will contribute to the growth prospects in the long-term.
GBP/CHF forecast 2020
Global investors seem to be increasing their tolerance to risk as there has been positive reaction to any positive news around reopening of the UK and Swiss consumer markets, even before the reopening happens.
Open discussion in both countries about the possibility of negative interest rates to buoy the faltering economies has increased investors’ willingness to take on pandemic related risk. This is the ultimate outcome of the unprecedented quantitative easing policies enacted in both countries and could play well for the pound.
Overall GBP/CHF prediction is based on the pandemic in the coming months and the ability of the UK and Switzerland to reopen their economies. The pound is considered a global reserve currency and demand increases as global trade revives. The ability of consumer markets to ease restrictions and allow citizens to begin economic activity will be the largest factor in the increasing of the GBP/CHF pair quote price.
Still, according to WalletInvestor.com, the GBP/CHF forecast is considered a bad long-term investment. The forex rate prognosis for the next 12 months is 1.146. Therefore, if you decide to invest today with the GBP/CHF rate equal to 1.188 (as of May 19, 2020), your current investment may be devalued by 3.6 per cent in the 1-year period.
What you need to know about GBP/CHF currency pair
The Swiss National Bank has been taking significant efforts to suppress the value of the franc since the pandemic…
Go to the news source: moving on the back of UK and global reopening strategies