The recent outlook for the GBP to CHF exchange rate reflects ongoing challenges for the British Pound amidst UK fiscal concerns. Analysts note that the Pound has faced persistent pressure, particularly as discussions surrounding Chancellor Rachel Reeves’s scheduled autumn budget raise uncertainties. Investors are closely watching as plans for tax increases and spending cuts, aimed at addressing the UK's fiscal situation, are set to be announced on November 26. This backdrop of fiscal anxiety leaves the GBP vulnerable in the currency markets.
Despite a modest 0.1% growth in the UK economy recorded in August, forecasters are concerned about a potential "bumpy landing" for the economy. This sentiment is compounded by expectations from the Bank of England of possible interest rate cuts in February 2026 as inflation trends downward. Recent monetary policy divergence between the Bank of England and the U.S. Federal Reserve has provided some support for the GBP against the USD, but this strength may not sufficiently bolster the Pound against a more stable Swiss Franc, especially given the broader economic landscape.
For the Swiss Franc, the outlook remains influenced by the Swiss National Bank's (SNB) recent actions, including significant foreign currency purchases aimed at stabilizing the currency amid challenging global market conditions. The SNB is expected to maintain its interest rate at 0.00% throughout 2026, supporting a stable economic environment despite recent deflationary pressures linked to a strong Franc. Moreover, external factors such as newly imposed U.S. tariffs on Swiss exports have added further strain, compelling Swiss businesses to reassess operational strategies.
As of the latest market data, the GBP to CHF exchange rate stands at 1.0591, which is 1.4% lower than its three-month average of 1.0744. The rate has traded within a relatively stable range of 1.0530 to 1.0937. This stability suggests the GBP may continue to drift lower against the CHF if fiscal uncertainty persists and as the SNB works to maintain a consistent monetary policy.
Market participants should remain alert to upcoming economic data from the UK and any revelations from the SNB, as these could provide clearer direction for the GBP/CHF exchange rate going forward.
