empty
12.08.2019 11:11 AM
Difficult times await the pound/franc – UBS

This image is no longer relevant

According to the estimates of the largest bank UBS Global Wealth Management, the previous 12-month forecasts for the pound/franc (GBP/CHF) were revised down significantly. Experts believe that the reason for this is the growing tensions in trade between the US and China. They believe that the current situation will support the demand for the Swiss currency.

According to preliminary forecasts of UBS Wealth analysts, the decline in the GBP/CHF pair will be within the 1.27 indicator. The previous indicator of the bank was 1.29. At the end of last week, the GBP/CHF rate fell to the level of 1.1728, which is the weakest indicator since October 2016. According to UBS Wealth experts, in the future, we should expect the recovery of the pound. Experts attribute this to the high probability of extending the Brexit period. They recall that the UK's exit from the EU, which expires on October 31, 2019, may be extended after the general election in the country.

Concerning the Swiss franc, UBS Wealth analysts are confident that it will be supported by global uncertainties, such as the trade conflict between Washington and Beijing. The fall of the GBP/CHF pair will be limited to levels up to 1.15, if there is no "hard" Brexit without a deal, experts emphasize.

In the case of the worst-case scenario, namely the UK's exit from the EU without a deal, the collapse of the GBP/CHF pair will reach 1.05–1.10, according to UBS Wealth. Another reason for the sharp depreciation of the pound/franc pair may be the monetary policy of the Swiss National Bank. Negative developments are possible if the regulator refuses to follow the global trend aimed at weakening monetary policy by central banks around the world.

In the case of the gradual recovery of the European economy and positive results of Brexit, the situation for the GBP/CHF pair will be the best. In this situation, the pair can reach the record of 2019 at the level of 1.34, summarize in UBS Wealth.

This image is no longer relevant

Larisa Kolesnikova,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Why are stocks rising as yuan sags and U.S. futures slip?

The financial world breathed a sigh of relief on Thursday as stock markets surged higher and the chaotic bond selloff finally slowed down. The reason was a surprise initiative

Thomas Frank 10:17 2025-04-10 UTC+2

US Market News Digest for April 9

US stock indices closed lower after the White House announced a new wave of tariffs on Chinese goods. The rate could rise to 104%, a direct hit on imports

Irina Maksimova 12:33 2025-04-09 UTC+2

Domino effect: US tariffs slam markets, investors dump dollar, bonds

Trump's China tariffs spark recession fears US Treasuries and dollar hit by sell-off, yields soar European stocks fall as US retaliatory tariffs take effect World markets face crisis-era volatility, stocks

Thomas Frank 11:20 2025-04-09 UTC+2

"Golden" Forecasts: Gold at $3,500, $3,700 – Higher and Higher?

Gold forecasts are becoming increasingly dazzling in every sense, as analysts appear to be competing with one another over how high the precious metal could go. Rising geopolitical instability

Larisa Kolesnikova 11:07 2025-04-09 UTC+2

Markets on roller coaster: Dow plummets, gold rallying, Trump keeps investors on edge

The changes in Wall Street indices for the last 24 hours: the S&P 500 fell by 0.23%, the Nasdaq rose by 0.10%, and the Dow dropped by 0.91%. The S&P

12:25 2025-04-08 UTC+2

US Market News Digest for April 8

The Trump administration's latest wave of tariffs is reshaping economic expectations. Goldman Sachs is now forecasting a recession within the next 12 months, while JPMorgan analysts are pricing

Ekaterina Kiseleva 12:14 2025-04-08 UTC+2

Markets in turmoil: Dow plunges, gold surges, Trump adds tension

US stock indexes closed lower on Monday, after a session full of sharp swings. Investors are wary of signs of an economic slowdown and a surge in inflation risks, exacerbated

Thomas Frank 08:39 2025-04-08 UTC+2

Trade War: S&P 500 Plunges 3%, Nikkei 6% as Investors Brace for Worst

Wall Street Futures Open Sharply Lower Investors fear a U.S. recession amid escalating trade war. Trump Announces Massive Tariffs on Key Trading Partners S&P 500 Futures Lose More Than 3%

Thomas Frank 11:59 2025-04-07 UTC+2

US Market News Digest for April 7

On April 7, futures on the S&P 500 index approached the key support level of 4,953. Holding above this zone could pave the way for a rebound targeting 5,100

Ekaterina Kiseleva 11:42 2025-04-07 UTC+2

US vs. Everyone: Trump Tariffs Crash Markets from Wall Street to Europe

US stock markets crashed on Thursday, posting their most painful daily losses in years, as Donald Trump's unexpected and aggressive tariff maneuver unleashed a wave of panic on global markets

Thomas Frank 12:09 2025-04-04 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.