Great Britain Pound vs Swiss Franc
GBP CHF is the oldest currency cross rate with regard to USD. The economic competition of the British and Swiss currencies developed historically and began long before establishing of US dollar as the basic asset. Speculative volatility is provided by GBP presence in the quote, which is, due to the independent policy of Great Britain in EU is considered as a stable and safe asset. The high cost of the lot in the cross rate allows to earn on short-term operations.
Chart GBP CHF tracks EUR CHF movement practically completely. Dramatic reversals on the news are technically characteristic: in case of publishing positive data for pound, purchases are always careful, and in case of any negative pound sells quickly and capital moves to safer franc. British pound Swiss franc Forex trade is recommended only to experienced traders.
The following factors have fundamental influence on the forex GBP CHF forecasts: the main economic indicators of Great Britain, Eurozone, Switzerland, and the USA (discount rate, GDP, inflation, unemployment level, CPI, PMI, etc.); Statements made by officials and financial structures of those countries, European and American financial regulators; Currency interventions of Swiss franc; monetary policy of ECB and the Bank of England; European stock market indexes FTSE 100, Swiss Market Index, DAX, CAC 40.
The British pound Swiss franc pair is highly liquid only in the period of the European session. Main volume: exchange and speculative operations of SNB and the Bank of England, commercial and short-term option contracts, short-term hedging operations.