The GBP/CHF rate is characterized by stability and low volatility. The flat trend, with a range of 1.2470 - 1.2870 CHF, has continued for the last six months, and has no signs of ending. Despite the growing popularity of safe assets, the Swiss Bank is taking active measures to prevent the strengthening of the CHF. One of the most popular methods it uses is currency interventions, and, of course, an ultra-soft monetary policy. The pound, in turn, does not find enough incentives to grow. Economists expect a slowdown in economic growth in the UK amid the consequences of the pandemic and Brexit. Excessive inflation is also predicted due to rising oil and gas prices. The prospects of a change in the rate by the Bank of England next month strengthened the pound slightly against the weak franc.
Over the past seven days, the rates have changed mainly under the influence of external factors. However, the macroeconomic reports that were published did not contribute to optimism about both currencies. In particular, it became known that there was a decline in retail sales in the UK for the fifth month in a row, and the index of investor business sentiment in Switzerland fell by another 10 pips in October. Recall that in May, this index peaked at 72.2 pips against 15.6 now.
Most technical analysis tools indicate the effectiveness of the deals to SELL, in favor of the safe franc. The external macroeconomic background as a whole remains unfavorable for investments in risky assets. Therefore, the decision to buy the franc today is quite reasonable. So, our choice today are the deals to SELL.
