The Pound Swiss Franc (GBP/CHF) exchange rate is rangebound this morning as markets digest the UK parliament’s decision to trigger a snap election before Christmas.
The Pound (GBP) is facing down the threat of significant volatility in the coming weeks as the UK gears up for its third general election in five years.
The result of the election almost impossible to predict and the risks of a hung parliament appearing high, Sterling is likely to find itself vulnerable to some weakness in the weeks to come.
Meanwhile, any upside potential in the Swiss Franc (CHF) remains tied to US-China trade developments.
In recent weeks a flurry of positive headlines surrounding US-China trade talks has greatly diminished demand for the safe-haven franc.
US President Donald Trump has been a key factor of this, having frequently played up the chances of a ‘phase 1’ trade deal being signed by himself and Chinese counterpart Xi Jinping when they meet at the Asia-Pacific Economic Cooperation Summit in Chile next month.
However recent reports suggest the preliminary deal would be ready in time for the summit, which should it prove true could curtail the recent risk-on mood and see investors flock back to the Swiss Franc.
GBP/CHF LONG (Buy)
ENTER AT: 1.2763