Pound Swiss Franc (GBP/CHF) Exchange Rate Muted, UK Halifax House Prices Surge
The Pound Sterling Swiss Franc (GBP/CHF) exchange rate is flat this morning, with the pairing trading at an inter-bank rate of 1.2395Fr – close to the week’s opening levels.
On Friday, data revealed that UK house prices jumped to a higher-than-forecast 5.7% in the three months to June.
This came after prices surged 5.2% in the quarter to May.
However, Sterling sentiment was left dampened as data found that monthly prices shrank 0.3% in June.
Commenting on the data, Managing Director of Halifax Russell Galley noted:
‘More generally the housing market is displaying a reasonable degree of resilience in the face of political and economic uncertainty. Recent industry figures show demand looking slightly more stable, with mortgage approvals ticking along just above the long-term average.
‘One of the major restraining factors on the volume of transactions in the market continues to be the very low level of stock for sale. With the ongoing lack of clarity around Brexit, people will be looking for more certainty in the coming months, both to encourage them to list their property and to create the confidence needed to encourage buyers.’
Swiss Franc (CHF) Exchange Rates Flat as Swiss CPI Edges Up in June
Meanwhile, on Thursday data showed that the Swiss Consumer Price Index (CPI) rose at a higher-than-forecast annual rate of 0.6% in June.
Between May and June, CPI remained flat at 0%.
However, this was still above expectations as the figure was forecast to slide in June.
In a statement, the Swiss Federal Statistical Office (FSO) stated:
‘The stability of the index compared with the previous month is the result of opposing trends that counterbalanced each other overall. Heating oil and prices for stone fruit decreased. In contrast, prices for international package holidays and fruiting vegetables increased.’
Risk Appetite Buoyed, US-China Trade Talks Set to Resume
The safe-haven Swiss Franc (CHF) remained under pressure as risk appetite rose following an agreement between the US and China to resume trade talks.
According to the Trump administration, top representatives from the US and China are scheduled to resume talks next week.
While it is unclear when face-to-face talks will continue, White House Economic Advisor Larry Kudlow stated that they would begin ‘soon’.
However, on Thursday China’s Ministry of Commerce spokesman Gao Feng said that for any deal to be reached current US tariffs on Chinese imports would have to be removed.
Pound Swiss Franc Outlook: Will Lower than Forecast Swiss Unemployment Buoy CHF?
Looking ahead to next week, the Pound (GBP) could edge up against the Swiss Franc (CHF) overnight on Monday following the release of the UK like-for-like retail sales report.
If the British Retail Consortium (BRC) reveals that sales have jumped by more than expected, Sterling could find some much needed support.
Meanwhile, on Tuesday morning the Franc could rise following the release of the Swiss unemployment rate.
If June’s unemployment rate edges down unexpectedly, the Pound Swiss Franc (GBP/CHF) exchange rate could slide.