GBP/CHF Continues to Ride Interest Rate Differential

The GBP/CHF currency pair has seen continued buying activity as the carry trade remains strong. According to Christopher Lewis, a technical analyst at DailyForex, this is not surprising given the interest rate differential between the two currencies.

With the Swiss National Bank maintaining its zero-interest-rate policy, the British pound takes advantage of the disparity in rates. The recent economic data from the UK has been weaker, but the interest rate difference remains a significant factor driving this pair higher.

Christopher Lewis notes that any short-term pullbacks are viewed as buying opportunities, and he remains bullish on the pair. He believes that as long as the GBP/CHF stays above the 50-day EMA at 1.0907, the market technically looks bullish.