The GBP to CHF exchange rate has recently shown signs of volatility, reflecting varied economic factors affecting both currencies. Currently, GBP is trading near 90-day lows at 1.0647, which is 1.1% lower than its three-month average of 1.0768. This exchange rate has remained within a stable range of 1.0647 to 1.0937 over the past few months.
Recent updates regarding the UK economy hint at a potential weakening of the pound. The UK is anticipating low growth figures, with forecasts suggesting only a 0.1% rise in GDP for August after a stagnation in July. Analysts note that the release of these figures may negatively influence GBP, particularly due to ongoing concerns regarding fiscal stability and the labor market.
Contrarily, GBP found some support from positive developments elsewhere, like political instability in France and Japan, which inadvertently boosted the British currency against both the euro and the yen. This suggests that external factors could lend the pound some resilience amidst domestic economic challenges. However, the overall outlook remains cautious as markets adjust to fiscal policy decisions expected in the upcoming UK budget in November.
On the Swiss front, the Swiss National Bank (SNB) is maintaining a zero interest rate policy amid low inflation, with expectations to sustain this environment throughout 2026. The recent downward revision of Switzerland's economic growth forecast by the IMF to 1.3% has raised additional concerns regarding economic performance. Moreover, the imposition of new tariffs on Swiss exports by the U.S. has created significant pressure on the Swiss economy and its currency.
The combination of UK political and economic uncertainty alongside Swiss challenges, particularly related to tariffs and growth forecasts, positions the GBP to CHF exchange rate in a delicate state. Analysts suggest businesses and individuals engaging in international transactions closely monitor these developments, as shifts in this currency pair could result in more favorable rates or significant costs based on the prevailing market trends.
