Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24
Micro Strategy Bubble Mania - 10th May 24
Biden's Bureau of Labor Statistics is Cooking Jobs Reports - 10th May 24
Bitcoin Price Swings Analysis - 9th May 24
Could Chinese Gold Be the Straw That Breaks the Dollar's Back? - 9th May 24
The Federal Reserve Is Broke! - 9th May 24
The Elliott Wave Crash Course - 9th May 24
Psychologically Prepared for Bitcoin Bull Market Bubble MANIA Rug Pull Corrections 2024 - 8th May 24
Why You Should Pay Attention to This Time-Tested Stock Market Indicator Now - 8th May 24
Copper: The India Factor - 8th May 24
Gold 2008 and 2022 All Over Again? Stocks, USDX - 8th May 24
Holocaust Survivor States Israel is Like Nazi Germany, The Fourth Reich - 8th May 24
Fourth Reich Invades Rafah Concentration Camp To Kill Palestinian Children - 8th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

British Pound Still Rallying Against Swiss Franc

Currencies / British Pound Jul 21, 2015 - 05:47 AM GMT

By: Richard_Cox

Currencies

Forex markets have posted some significant trends so far in 2015.  But when we look at the overall value of the British Pound (GBP), the comparisons are generally made against either the Euro or the US Dollar.  There is a strong basis for this fact, as both of these currencies see much larger trading volumes than some of the other selections that are available in the currency markets. 


There is also the added influence that is generated by the Federal Reserve in raising interest rates and by the European monetary union in its suggestion that one or more of its member states could be forced to leave the union.  But when we look at the recent activity against the Swiss Franc (CHF), some very interesting trends have started to develop which suggest continued upside in the Pound.  Many of these trends have been propelled by central bank factors and the viability of these trends is confirmed by many practicing both technical and fundamental analysis. 

Broad weakness in the CHF sharply increased after the Swiss National Bank (SNB) removed its price peg relative to the Euro (at 1.20).  This action made the CHF one of the most volatile assets in the currency market this year.  Since then, the Pound has made steady gains and the GBP/CHF is now trading above the 1.50 level. 
A clear break at this stage would target levels that have not been seen since the SNB changed its policy on the CHF.  Recent market reports from MediaGroup Switzerland show that statements from the SNB have done little to highlight the need for higher currency values and this ultimately points toward a continuation of the dominant trend higher in the GBP/CHF.

Whether or not the same types of trends will continue in other sections of the market remains up for debate.  Against the Euro, we are likely to see continued strength as there are still some clear problems in the fragmentation of the region’s monetary union.  In the US, most of the trend factors will be determined by the rate at which the Federal Reserve changes interest rates.  But if you are looking to take active positions in the GBP, the likely road is much more clear as there is little reason for the SNB to move again in currency policy any time this year.  As long as this remains the case, we should be seeing much higher highs in the GBP/CHF. 

By Richard Cox

© 2015 Richard Cox - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in