BofA update shows where active managers are putting money
Investing.com - UBS has raised its price target for the GBP/CHF currency pair to 1.13, citing the pound’s carry attractiveness following recent central bank decisions.
The Swiss bank noted that GBP/CHF has recently faced pressure from weaker UK labor market data and escalating tensions in the Middle East, but expects the pair to regain lost ground barring further negative risk events.
UBS highlighted that the mid-June central bank meetings resulted in the Bank of England continuing its gradual easing path, while the Swiss National Bank’s rate returned to zero, enhancing the pound’s appeal in the GBP/CHF pair.
The firm forecasts GBP/CHF to appreciate toward 1.13 in the near term, based on the current interest rate differential between the two currencies.
UBS projects a pullback to 1.10 next year as the rate differential between the pound and Swiss franc is expected to shrink.
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