Sterling gained over 2 cents against the Swiss Franc this week, hitting lows of 1.38 as seen in the earlier stages of the week. Despite poor manufacturing data releases and an EU referendum fast approaching, expectations point to anything but sterling strength.
I suspect that as we approach the EU referendum rates to drop dramatically, perhaps even to the low 1.30’s seen last January. I therefore recommend anyone looking to purchase Swiss franc with sterling does so sooner rather than later.
Key Swiss economic data due next week
Next week we look ahead to key economic data; on Tuesday we have Consumer price index releases for April which are forecasted for lower growth compared to March. Wednesday is the big event providing unemployment rates which can cause high volatility for the currency.
Despite these figures the Swiss Franc is considered a safe-haven currency and even during volatile events, currency movements are minimal and I therefore expect a cent or two weakness in the worst case scenario.
The upcoming EU referendum will be the main driving force behind the pairs’ rate change and those wishing to travel should make the most of 1.40 safety.