Pure FX Blog

10 August 2017

Swiss Franc Hits 2-Week High Versus Pound, as North Korea Threat Rises

The Swiss franc to pound interbank exchange rate has hit its highest in 2 weeks today, at 0.7982, as North Korea has advanced its nuclear weapons program. Image credit: Nimalan Tharmalingam.

The Swiss franc to pound interbank exchange rate has hit its highest in 2 weeks today, at 0.7982, as North Korea has advanced its nuclear weapons program. Image credit: Nimalan Tharmalingam.

by Peter Lavelle

Welcome to Pure FX’s latest update of the Swiss franc to pound interbank exchange rates.

The franc shoots up versus sterling! The Swiss franc to pound interbank exchange rate has hit 0.7982 today, its highest in 2 weeks, or since July 26th.

The franc has strengthened against the pound, because tensions between the USA and North Korea have risen, following reports that North Korea’s nuclear weapons program is advancing.

This has lifted the Swiss franc, because Switzerland is considered a financial safe haven during turbulent times in the world, meaning that the franc tends to rise as tensions increase.

In particular, the franc has gained, because US President Donald Trump said yesterday that he would launch “fire and fury” against North Korea, inflaming nervousness among investors.

What’s more, North Korea responded to Mr. Trump by saying that Pyongyang would bomb the US overseas territory of Guam, thereby further aggravating the situation, and boosting the franc!

Pound weakens, as UK “a bit absent” from Brexit talks

Moreover the Swiss franc has also strengthened against the pound, because the UK has been “a bit absent” from Brexit talks, according to former head of the Foreign Office Sir Simon Fraser.

Speaking this week, Sir Fraser commented that “I don’t think [the Brexit talks] have begun particularly promisingly, frankly, on the British side”, thereby weakening sterling.

In particular, Sir Fraser said that “there are differences within the Cabinet about the sort of Brexit that we are heading for” and the UK still lacks “a clear position”, weighing on the pound.

This has weakened the pound, because if the UK government Cabinet struggles to agree what sort of Brexit it wants, this may prevent the UK agreeing a favourable trade deal with the EU in future.

With all this in mind, the Swiss franc to pound interbank exchange rate has hit this 2-week high today!

Get a free Swiss franc to pound exchange rate quote

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Please bear in mind, this article is Pure FX’s opinion only and does not constitute advice. Moreover, the exchange rates referred to in this article are the interbank rates, which are the rates at which banks and financial institutions buy and sell currency to each other. Therefore these exchange rates cannot be accessed by individuals or SMEs, and are not the same rates that Pure FX can offer. To get a free exchange rate quote, call us on +44 (0) 1494 671800, or email peter.lavelle@purefx.co.uk.

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