On Friday, the British pound was higher than the Swiss franc.
Prime Minister Boris Johnson left intensive care on Thursday evening, helping the pound to gain gains in most FX spaces on Friday.
Many global stock and bond markets are closed on Good Friday and currency flows are significantly below normal. This week, the S&P 500 experienced its best weekly gains since the 1970s, an environment that does not suit the paradise of the Swiss franc.
The GBPCHF rose 19 pips (+ 0.16%) to 1.2044 at 3:00 p.m. GMT.
The currency pair pulled out of the day’s high around 1.208 to lie in a range of 20 pip above 1.203. The gains are added to a narrow increase of + 0.04% Thursday and leave the exchange rate with gains since the start of the week of + 0.36%.
British pound wins as PM leaves intensive care
British Prime Minister Boris Johnson, who abandoned intensive care, contributed to the rise of the pound against the Swiss franc on Friday. The Prime Minister is likely to continue to receive hospital treatment for several days, therefore, in his absence, Foreign Minister and Deputy Leader Dominic Raab has announced that the period of detention in the United Kingdom will be extended for three weeks, in a widely expected gesture.
Most market participants saw three weeks of foreclosure as insufficient to control the spread of the virus and had already set the price in a longer period of economic inactivity, not only in the UK but also in Switzerland.
Swiss franc falls as stock markets have had their best week in three decades
The Swissie has managed weekly lows against the pound but remains under pressure. The risk to the flavor of the markets over the past week has weighed on demand for paradises like the franc.
The US stock markets dominated the world markets. During this shortened vacation week, the S&P 500 rose 12.1% for its best weekly return since 1974. The Dow Jones further increased 12.7% for one of its best weekly gains ever.
In Switzerland, the government has forecast a “worse scenario” where GDP would fall by -10% this year due to the negative impact of the coronavirus.