The British pound is lower against the Swiss franc on Thursday.
The UK government maintaining its official stance of not extending the Brexit transition period kept the pressure on the pound while other risky assets were gaining round.
The Swiss franc was supported by plans in Switzerland to slowly re-open the Swiss economy starting April 27.
GBP/CHF was down by 20 pips (-0.15%) to 1.2050 as of 5pm GMT.
The currency pair was oscillating in a 40-pip range between 1.205and 2.209 for the bulk of the day, showing little directional bias. Yesterday the exchange rate fell -0.40%, leaving the exchange rate little changed week-to-date, up just +0.14%.
Pound drops under renewed Brexit pressures
A spokesman for the UK Prime Minister said on Thursday that “extending the Brexit transition period would prolong uncertainty.” The UK policy remains not to request any extension and to reject any EU request to extend the transition period.
The minimal reaction in the pound to the latest statement can probably be explained away by the fact that the position of the Prime Minister on this matter has not changed. Were the position to change and Boris Johnson were heading to the EU to request an extension, than logically a stronger reaction might be expected in markets.
Swiss franc rises on plans to re-open Swiss economy
Authorities in Switzerland outlines plans to slowly re-open the Swiss economy on Thursday, giving a small lift to the franc, which was otherwise pressured by a more risk-on tone in markets.
Under the Swiss ‘re-opening’ plan doctors, hairdressers, massage and cosmetic parlours can reopen April 27 while obligatory schools, stores and markets will be reopening on May 11. Non-obligatory schools, universities, museums, zoos and libraries are to reopen on June 8. The easing of restrictions is to be accompanied by protective measures and an obligation to wear face masks is possible. Vulnerable people are to remain at home and any relaxation of restrictions hinges on no significant rise in new COVID-19 cases.
Each particular government is choosing their own flavour, but the plan for a gradual re-opening of the economy seems to be a consistent theme.
