The Pound Sterling to Swiss Franc (GBP/CHF), Pound Sterling to Euro (GBP/EUR) and Euro to Swiss Franc (EUR/CHF) exchange rates were all trending lower in the first half of Tuesday’s European session after Markit’s German Composite, Manufacturing and Services Purchasing Managers Indexes (PMI) came in better than forecast.
Earlier… The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to Swiss Franc (GBP/CHF) exchange rates began Monday trending lower, while the Euro to Swiss Franc (EUR/CHF) exchange rate found itself trading higher.
The Swiss National Bank (SNB) will release its quarterly bulletin on Wednesday which could impact Swiss Franc to Euro (CHF/EUR) and Swiss Franc to Pound Sterling (CHF/GBP) trading. Last week saw the Swiss National Bank make the decision to keep interest rates at -0.75% rather than implementing another cut as many economists had forecast.
SNB President Thomas Jordan suggested that Swiss rates would remain lower after the recent cut, stating: ‘We have now to see that is the impact and for the rime being this is the right level.’
Furthermore, SNB representatives have also suggested that the central bank is prepared to intervene in the foreign exchange market if necessary.
The Euro to Swiss Franc (EUR/CHF) exchange rate is trending in the region of 1.0574.
Meanwhile, the Euro could be in for movement later in the session with European Central Bank (ECB) officials scheduled to speak.
UPDATE: ECB President Draghi spoke and suggested that the Euro area has been strengthening as a result of a softer currency and lower oil prices.
In addition, German Chancellor Angela Merkel is due to meet Greek Prime Minister Alexis Tsipras on Monday to discuss the situation with Greece’s austerity deal.
However, the situation is getting desperate and experts have forecast the country to run out of finances in the near future.
Berenberg Bank economist Christian Schulz commented: ‘The news out of Athens is getting more and more desperate, with the government apparently on track to run out of money in early April.’
‘Having learned the hard way that Europe cannot be blackmailed, it is difficult for us to understand why Syriza is dragging its feet on implementing the necessary reforms to secure funding and why it subjects the Greek people to deepening economic and financial crisis.’
GBP/EUR, GBP/CHF Flop as CBI Data Tanks
The Pound Sterling to Euro (GBP/EUR) and Pound Sterling to Swiss Franc (GBP/CHF) exchange rates had already taken a hit in the early part of Monday’s trading as political pressures weighed on the British Currency; however, the Pound Sterling took another hit after the release of CBI Industrial Trends Orders.
The ecostat slipped from 10 to 0 in the month of February despite economists expected a smaller drop to 9. The CBI Business Optimism Index will be out later in Monday’s trading which could impact the Pound Sterling exchange rate further.
Additionally, the Pound Sterling to Euro (GBP/EUR) exchange rate felt a particular hit from Bundesbank’s Monthly Report which suggested the German economy was in for further strong expansion.
Pound Sterling to Euro (GBP/EUR), Pound Sterling to Swiss Franc (GBP/CHF) Exchange Rate Forecast
The Pound Sterling exchange rate is likely to experience hefty movement on Tuesday with the release of UK Consumer Price Index (CPI) figures. Any inflation stats are likely to be closely watched for indications of a Bank of England (BoE) rate hike.
The Euro is also likely to fluctuate during Tuesday’s trading with Markit’s German and Eurozone Composite, Services and Manufacturing Purchasing Manager’s Indexes (PMI) due for release. The Swiss Franc exchange rate is forecast to experience movement on Wednesday with the release of the Swiss UBS Consumption Indicator.
The Pound Sterling to Swiss Franc (GBP/CHF) exchange rate is trading at 1.4504, while the Pound Sterling to Euro (GBP/EUR) exchange rate is trending in the region of 1.3698.