The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate began Tuesday’s trading higher, while the Pound Sterling to US Dollar (GBP/USD) exchange rate was trending lower.
Earlier… The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate advanced while the Pound to US Dollar (GBP/USD) exchange rate fell on Monday despite a rise in UK Mortgage Approvals in February.
UK Mortgage Approvals hit 61.8K in February rather than the 61.5K forecast after January’s 60.7K.
Monday’s been a rather busy day for domestic data with the Swiss KOF Leading Indicator rising from 90.3 to 90.8 in March rather than coming in at 89.1 as forecast.
KOF stated: ‘The steadying of the index reflects a slightly less pessimistic outlook than in February, with sentiment on consumer spending, industry output and exports improving.’
Swiss data has been monitored closely since the Swiss National Bank (SNB) removed the cap between the Euro and the Swiss Franc (EUR/CHF) which caused the Swiss currency to rally.
Meanwhile, the US Dollar to Pound Sterling (USD/GBP) and US Dollar to Swiss Franc (USD/CHF) exchange rates enjoyed some support on Monday when US Personal Consumption Expenditure rose higher-than-predicted to reside at 1.4% in February on the year. Economists had expected the ecostat to stagnate at 1.3%.
Pound Sterling to Swiss Franc (GBP/CHF) and Pound Sterling to US Dollar (GBP/USD) Exchange Rate Forecast
Tuesday could be another interesting day for Pound Sterling trading with the release of GfK’s UK Consumer Confidence Survey. Final UK Gross Domestic Product (GDP) ecostats will also be available and could impact the GBP/CHF and GBP/USD currency pairs.
US Dollar to Swiss Franc (USD/CHF) and US Dollar to Pound Sterling (USD/GBP) Exchange Rates Jump on Fed Rate Outlook
Meanwhile, US Federal Reserve officials are expected to speak throughout the day which could be another cause for US Dollar movement. Last week Federal Reserve Chairwoman Janet Yellen stated that she forecast interest rate hikes to occur this year, but reiterated that any adjustments would be small and gradual.
Yellen stated: ‘If conditions do evolve in the manner that most of my [Fed] colleagues and I anticipate, I would expect the level of the federal funds rate to be normalised only gradually, reflecting the gradual diminution of headwinds from the financial crisis and the balance of risks I have enumerated of moving either too slowly or too quickly.’
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is trading at 1.4395. The Pound Sterling to US Dollar (GBP/USD) exchange rate is trending in the region of 1.4828.
