Pound Sterling / Swiss Franc - GBP/CHF

Far less volatile on the Forex than the “Cable” (GBP/USD), the GBP/CHF cross had fluctuations which essential structural date are on the one hand the link between the external value of the British currency with the power and particularly oil rates, and on the other hand the “defensive security” aspect of the Swiss currency which had always tended to appreciate in periods of financial instability and/or economic crisis.

Even if the key interest rates of the great central banks are no longer instruments that enable these banks to have a direct influence on the external value of their currencies, the higher interest rates policy run by the Bank of England in the 2000s (and in particular in 2006-2007), along with the low interest rate policy run at the same time by the Swiss National Bank, had a sizeable effect on the fluctuations of the GBP/CHF cross during this period. 

From a higher of GBP/CHF = 2,6614, the fluctuations of the GBP/CHF cross alternated until 2005, bullish and bearish periods dominated by a general impression of stability of a small appreciation of the Swiss Franc (GBP/CHF = 2,6110 in October 2000 ; GBP/CHF = 2,5518 in May 2001).

The lower of this period was reached in May 2003 at GBP/CHF = 2,1086 and the cross was at GBP/CHF = 2,29 by the end of 2005.

A slow and continuous appreciation of the pound sterling happened until June 2007 but without reaching again the higher of the year 2000 (GBP/CHF = 2,48 en June 2007), before that a depreciation of the British currency, parallel to its  depreciation against the US dollar (the trend reversal happened at the same  time during the subprime crisis) extended to a clear decrease of the cross which lasted until a lower of GBP/CHF = 1,58v at the beginning of January 2009.

Then the Pound sterling increased against the Swiss Franc (GBP/CHF = 1,80 in June 2009), but as against the US dollar and the Euro, the British currency depreciated again at  the end of the Fall 2009 (GBP/CHF = 1,6756 at the beginning of December 2009).