The GBP/CHF pair has been trading in a relatively narrow range for the past several weeks due to lower trading activity during the summer months. However, the pair also appears to be building momentum as it is currently in the early stages of creating a new directional swing.
Heightened volatility can be anticipated to affect GBP/CHF's price action in the near term due to two crucial developments. Firstly, the number of global coronavirus cases continues to rise rapidly, which threatens the fragile global recovery as governments might refrain from easing their containment restrictions and reintroduce more stringent lockdown policies.
For reference, the US added nearly 55 thousand new cases yesterday, while China reports the biggest spike since the termination of the lockdown in Wuhan. A sizable surge in Spanish cases also manifests a concern for European leaders.