GBP/CHF forecast for November 13, 2020
Looking at the chart, we will see that the GBP/CHF pair managed to go up to 1.22000 three times and make a pullback down again to support around 1.16000. Yesterday, the pound had disappointing news that had an impact, and the bearish took the initiative.
This afternoon we will have a speech by Andrew Bailey, Governor of the Bank of England, on possible financial moves. The pandemic is taking a toll on economic activities in the middle of the second national blockade, which will last for a month, and started on November 4.
For the economy to move on, the government plans another stimulus, this time with tax relief. The number of newly infected with COVID-19 in the UK is at a record level of 33,000 people, and in addition to lockdown, the number of infected continues to grow.
The COVID-19 vaccine’s appearance is good news for companies in limiting the long-term damage that the pandemic causes to the economy, the Governor of the Bank of England, Andrew Bailey, said yesterday.
The American company Pfizer and their German partners BioNTech announced this week that a highly effective vaccine could be ready for use soon, and the British Minister of Health said that distribution before Christmas is possible.
The UK economy is likely to shrink again in the last three months of this year, putting the country further behind where it was before COVID-19, thanks to stagnation in October and the second blockade in England since November.
COVID-19 cases in Switzerland have fallen from 10,000 to 5,000 new infections in the last few days. In recent days, capital benchmarks have risen thanks to positive progress on the COVID-19 vaccine and expectations of a diplomatic approach to foreign policy under newly elected President Joe Biden.
Reports note that investors rushed to invest due to risk reduction, which could easily be offset by deteriorating health and economic conditions in several European countries.
The reality of rising Covid-19 cases and tightening restrictions seems to have diminished vaccine optimism.
The Swiss franc will continue to be a haven for investors in the coming period.
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