swiss-franc-bank-notes - CHF

The British pound is flat against the Swiss franc on Tuesday.

News that UK Prime Minister was moved into intensive care as his condition worsened after contracting the coronavirus weighed on Sterling.

The pound was unable to capitalise on the improved risk sentiment across markets against the Swiss franc due to the political uncertainty associated with Boris Johnson’s absence.

GBP/CHF was up by 10 pips (+0.08%) to 1.1974 with a daily range of 1.2035 to 1.2219 of 3am GMT.

The currency pair slid sharply overnight and two subsequent rebounds to 1.20 failed to break through, leaving it near the flat line. The exchange rate is now down for the week to date by a small -0.13%.

Pound flat in risk-on rally as Johnson admitted to ICU

Having been admitted to hospital yesterday, UK Prime Minister Boris Johnson was moved to the intensive care unit (ICU) at St. Thomas Hospital in London.  The news sent the British pound suddenly lower on the implied political instability. There is also the shock to UK public confidence with the leader of the country seriously ill.

The pound later recovered some of the early losses on news that Johnson has reportedly not needed to go on a ventilator but has undergone ‘standard oxygen treatment’ to aid his breathing and he has not been diagnosed with Pneumonia.

Especially given the fractious recent history of Brexit, the pound remains very much vulnerable to political uncertainty.

Swiss franc out of favour as stock markets surge

The Swiss franc is holding its own against the pound on Tuesday but is lower against other more risk-on currencies like the Aussie (AUD/CHF). The franc has been viewed as a haven from coronavirus fears  in recent weeks. However markets have been in recovery mode this week, shedding any need for safety in the Swiss currency.

While the franc was falling, US Stock indices all gained in the vicinity of 7% on Monday and are pointed higher again on Tuesday amid small signs that the COVID-19 “curve is flattening” and as several countries plan to rollback lockdown rules.