The British pound has rallied quite nicely against the Swiss franc on Friday as the Retail Sales figures came out hot in the United Kingdom.
GBP/CHF
This is Christopher Lewis from Daily Forex, looking at the British Pound against the Swiss Franc. The British pound has rallied quite nicely against the Swiss franc during trading as retail sales numbers out of the UK came out hotter than anticipated as well as projected PMI numbers. So maybe, just maybe, the Bank of England will have to wait on cutting rates.
Conversely, in this pair, you have the Swiss National Bank who is basically sitting at zero and has no interest whatsoever in seeing the Swiss Franc appreciate. Quite frankly, I would not think it's much of a stretch that the Swiss would be thrilled with the British pound trading at 1.12 instead of the 1.07 level it is right now.
Clearing the 200-Day EMA
There is a little bit of a gap from the open of the week to the downside, but if we can clear the 200-day EMA, something that is just 98 pips above, a very reachable level in this pair over the course of 24 or 36 hours, that would be a momentous shift in the currency pair. I do think we're in the midst of bottoming in most of the Swiss Franc-denominated currency pairs.
Top Regulated Brokers
The interest rate differential makes it easy to hang on to this pair. I've been doing this pair and the US dollar against the Swiss Franc as a carry trade position going back and forth for several months, and I plan on doing that even further. However, I also recognize it's very likely this one could break out sooner rather than later. If we were to turn around and break down below the 1.06 level, that would destroy my thesis, and of course, I would have to back out.
Want to trade our daily forex analysis and predictions? Here's a list of the best FX brokers in Switzerland to check out.