Forex Market: GBP/CHF daily forecast

During yesterday’s trading session GBP/CHF traded within the range of 1.5214-1.5272 and closed at 1.5252.

At 6:46 GMT today GBP/CHF was gaining 0.06% for the day to trade at 1.5267. The pair touched a daily high at 1.5270 at 6:30 GMT.

Fundamental view

United Kingdom

The minutes of Bank of England will probably show that central bank’s policy makers were unanimous in keeping the interest rate unchanged at record low 0.5% at their last policy meeting on June 5.

The Bank of England was given the responsibility of determining the basic interest rates in 1998, in order to meet the challenges posted by the government inflation target. Decisions are taken by the Monetary Policy Committee of the central bank. The Committee consists of nine members and meets monthly. Minutes are usually published on Wednesday, two weeks after the policy meeting. The format of voting is number of members that voted for an increase of borrowing costs, number of members that wanted a reduction and the total number of members, that have voting rights.

If the minutes reveal the members weren’t unanimous in taking the decision, this would heighten the appeal of the pound as it can be an early indication that borrowing costs may be raised sooner-than-projected.

Bank of England is scheduled to release the minutes from its last meeting at 08:30 GMT.

Switzerland

The gauge of economic sentiment in Switzerland probably improved to 10.0 in May, according to the median experts’ forecast. In April, the index came in at 7.4.

The ZEW (Zentrum für Europäische Wirtschaftsforschung) economic expectations index is published monthly. The indicator reflects the difference between the share of analysts that are optimistic and those that are pessimistic about the expected economic development in Switzerland over the next six months. A positive figure indicates that the proportion of optimists is larger than that of the pessimists.

The ZEW is due to release an official report at 9:00 GMT. A higher-than-expected reading would certainly bolster demand for the Swiss franc.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/CHF manages to breach the first resistance level at 1.5278, it will probably continue up to test 1.5304. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5336.

If GBP/CHF manages to breach the first key support at 1.5220, it will probably continue to slide and test 1.5188. With this second key support broken, the movement to the downside will probably continue to 1.5162.