25 Feb 2015
GBP/CHF hits fresh post SNB highs
FXStreet (Córdoba) - GBP/CHF rose slightly above Monday’s highs and reached at 1.4735 the strongest level since January 15. Afterwards it pulled back toward 1.4700, where currently stands, marginally higher for the day.
The pound is rising for the third day in a row against the Swiss franc but so far it was unable to make a clear rally above 1.4700. The short term trend remains bullish.
GBP prefered amid monetary policy
Jane Foley, Senior Currency Strategist at Rabobank affirms that they expect that the Bank of England will announce the first rate hike in February 2016, a little sooner than current market expectations. “If UK money market rates continue to adjust towards our view sterling could find some additional support, though this is likely to be more marked against currencies which are being undermined by aggressive central bank policies”.
The Swiss National Bank could be among those aggressive central banks, considering that set negative interest rates with the intention to curb franc’s strength.
“Even though UK election uncertainty suggests that the sterling crosses could be facing a volatile period, the attraction of sterling has been underpinned by low levels of yields across much of Europe.”, explained Jane Foley.
The pound is rising for the third day in a row against the Swiss franc but so far it was unable to make a clear rally above 1.4700. The short term trend remains bullish.
GBP prefered amid monetary policy
Jane Foley, Senior Currency Strategist at Rabobank affirms that they expect that the Bank of England will announce the first rate hike in February 2016, a little sooner than current market expectations. “If UK money market rates continue to adjust towards our view sterling could find some additional support, though this is likely to be more marked against currencies which are being undermined by aggressive central bank policies”.
The Swiss National Bank could be among those aggressive central banks, considering that set negative interest rates with the intention to curb franc’s strength.
“Even though UK election uncertainty suggests that the sterling crosses could be facing a volatile period, the attraction of sterling has been underpinned by low levels of yields across much of Europe.”, explained Jane Foley.