GBP/CHF Outlook: Slightly weaker, but likely to move sideways, as the rate is below its recent average and near recent lows without strong drivers.
Key drivers:
- The Bank of England is expected to lower interest rates this year as inflation slows, which could weigh on the GBP.
- Despite the tragic fire in Crans-Montana, the Swiss Franc remains a safe-haven currency, appreciated due to global uncertainties influencing its strength.
- Emerging geopolitical tensions, especially concerning the US, have enhanced the appeal of the CHF, further complicating GBP's recovery prospects.
Range: The GBP/CHF is likely to hold within its recent range, with limited movement expected due to both currencies facing pressures.
What could change it:
- A rebound in UK manufacturing data could boost GBP sentiment and strengthen the currency.
- If the Swiss National Bank introduces negative interest rates or announces other interventions, the CHF might weaken, benefiting GBP.