Forex Flash: GBP/USD seen at 1.65 in 3 months - UBS (Córdoba) - Given the reduced tail risk in the euro zone, the increased likelihood of further QE in the US and the rebound in economic data in the UK over the last few weeks, the UBS team has changed its GBP forecasts.

"The GBPUSD forecast was upgraded to 1.65 (1.56) in 3M, 1.68 (1.65) in 6M and left unchanged at 1.70 in 12M", UBS says. "EURGBP and GBPCHF were changed only marginally to EURGBP 0.79 (0.78) over the whole forecast horizon and GBPCHF 1.54 (1.55), 1.54 (1.56) and 1.56 (1.58) over 3, 6 and 12 months".