GBP/CHF: Fundamental Review & Forecast

There is hope for a GBP recovery. Today our choice is the deals to BUY.

Fundamental Analysis
2021年8月18日

After a rapid growth at the beginning of the year, the rates consolidated in the range of 1.2530-1.2846 CHF. Nevertheless, the rates in the last few months have been expanding the consolidation range based on the shifting of the support line. A testing of the lows is also happening today. Risky assets have been under pressure in August due to the spread of the coronavirus and forecasts of the beginning of the fourth wave of the pandemic starting in September. Many countries are returning to lockdowns, and the UK has only recently emerged from a period of severe restrictions and is not ready to return to this regime again.

This week, the pound remains under pressure. In addition to the coronavirus pandemic, the value of the GBP is affected by disappointing reports on inflation and industrial output in the UK, as well as indirectly by macroeconomic statistics from China. At the same time, it is still one of the strongest currencies, and the downward movement in favor of the Swiss franc is very limited. Investors are not in a hurry to invest in the CHF with a negative yield. In the absence of macroeconomic reports on the Swiss economy, the value of the franc depends entirely on external factors, which are generally in favor of a safe currency, but there are not enough incentives for it to strengthen against a strong pound.

Investors are encouraged by good data on the UK labor market. Unemployment in the second quarter decreased by 0.1%. Next week, the volatility will decrease. We do not expect any important events for the GBP/CHF. At the same time, we believe that the flat trend will continue: there will be no trend reversal in the near future. As the maximum, the resistance line will decrease by several tens of pips. In the current situation, we are opening the deals to BUY today. The Stochastic oscillator would support this decision, pointing to the rates being in the oversold zone.

Stanislav Litinskyi
EUR/CAD: fundamental review & forecast

Fundamental Analysis

EUR/CAD: fundamental review & forecast

How long will the consolidation last and who will be stronger after all? Our choice for today - EUR.

Stanislav Litinskyi
2021年8月13日
NZD/JPY: fundamental review & forecast

Fundamental Analysis

NZD/JPY: fundamental review & forecast

Believe in the NZD recovery. Don't hesitate to BUY the NZD with decreased price.

Stanislav Litinskyi
2021年8月11日

Fundamental Analysis

AUD/CAD: Fundamental Review & Forecast

The CAD seems like the strongest commodity currency at the moment. Today our choice are the deals in favor of the CAD.

Stanislav Litinskyi
2021年8月06日