The exchange rate forecast for the Swiss Franc (CHF) against the British Pound (GBP) is currently influenced by a mixture of economic concerns in both Switzerland and the UK. As of recent data, the CHF to GBP exchange rate stands at 0.9407, slightly above its three-month average and within a stable range of 0.9223 to 0.9566.
For the GBP, the currency experienced volatility following the UK's autumn budget announcement, which led to a modest rally due to an end to budget uncertainty and revised growth forecasts for 2025. Nevertheless, there are growing concerns regarding fiscal health as the UK faces a potential £20 billion budget shortfall and speculation regarding imminent tax hikes. The looming November 26 budget and the possibility of interest rate cuts by the Bank of England contribute to a bearish sentiment towards GBP, leading analysts to predict potential declines in the currency's value.
Meanwhile, the Swiss economy has encountered challenges stemming from external factors, notably the tariffs imposed by the U.S. on Swiss exports, particularly impacting key sectors such as machinery and watchmaking. The Swiss National Bank (SNB) has maintained a zero interest rate policy, reflecting concerns over economic stability amidst these tariffs. Additionally, the SNB's significant foreign currency purchases underscore its attempt to manage the appreciation of the CHF, which may also weigh on its competitive position against other currencies, including the GBP.
Analysts suggest that the interplay between the UK's fiscal uncertainties and the Swiss economy's vulnerability to tariff impacts will be critical in shaping the CHF to GBP exchange rate. As both currencies respond to their unique pressures, currency exchange professionals and businesses should remain vigilant of these developments to optimize their international transaction costs.
