(09 JUNE 2017)DAILY MARKET BRIEF 2:Switzerland: Safe haven pressures expected amid UK results

That was a surprising result in the UK, Theresa May has lost her bet and did not win a clear majority. Her plan fell apart. A few weeks ago, markets had expected a large Conservative victory. But over the last week, the trend was rather negative for May and Labour leader Jeremy Corbyn’s result overcame expectations.

Now we wonder how this result will impact the Swiss franc in particular. What can be said is that there are more upside pressures on the Helvetic currency. Indeed, negotiations between the EU and the UK that should start next on June 19th promise to be tense.

This is especially because of tensions betweens the ‘hard' Brexiteers and the ‘soft' Brexiteers. European political uncertainties should prevail and no one could really say at the moment what the future UK exit package will look like. We anticipate in the medium-term more move towards the CHF.

By Yann Quelenn