UBS: GBP/USD to trade around 1.28 and EUR/GBP around 0.90 in 3M
|Union Bank of Switzerland’s CIO is expecting the GBP/USD pair to trade around 1.28 and EUR/GBP cross to trade around 0.90 over the next three months.
Key Quotes
“Given wide range of Brexit outcomes, we think the risks around those forecasts are more important than the numbers themselves.”
“In a hard Brexit scenario, CIO forecast GBP/USD could fall to 1.15 and EUR/GBP rise to close to 1. Even in a less bad scenario during the run-up to a general election or second referendum, GBP could still drop from current levels.”
“However, CIO would also caution against outright selling the pound beyond a few weeks' time. The currency remains undervalued on purchasing power parity terms, which makes it an unattractive sell over a multi-year horizon.”
“Instead, looking for long-term investment opportunities at GBP/USD levels of 1.24 and below should be the preferable long-term strategy.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.