Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
Investing.com - The Swiss franc demonstrated resilience despite recent tariff announcements, with the GBP/CHF pair now trading away from recent lows and settling in the middle of UBS’s expected range.
UBS has established a new target of 1.07 for the GBP/CHF currency pair in its September 2026 forecasts, emphasizing the growing importance of carry trade dynamics in this currency relationship.
The Swiss franc’s reaction to the announcement of 39% tariffs on Switzerland was notably muted, according to UBS analysis. This subdued response suggests market participants remain confident that negotiators will eventually reach a tariff agreement.
The British pound maintains a carry advantage against the Swiss franc, a position that UBS expects to continue in the near term. This advantage has been reinforced by another upside inflation surprise in the July data from the UK.
UBS projects that the pound’s interest rate premium should help push total returns for GBP/CHF into positive territory for investors maintaining positions in this currency pair.
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