GBP: UBS forecasts growth after trade deal

UBS

Analysts at Swiss financial giant UBS expressed optimism about the outlook for the British pound (GBP) following the announcement of a trade deal between the US and UK.

In its latest report, UBS highlights that the UK, being the only country to have a full trade agreement with the US, could reap significant economic benefits, which in turn would support the strengthening of the pound.

“Now that a US-UK trade deal has been announced, we believe sterling could benefit from the UK becoming the only country to sign a full trade agreement with the US,” the UBS report said.

Based on this forecast, UBS recommends opening long positions on the GBPUSD currency pair at 1.3390, with a target level of 1.38. This means that UBS analysts expect the pound to strengthen against the US dollar in the near future.

In addition to Forecasts For gBPUSD, uBS also shared its expectations for monetary policy and other Currency pairs. analysts are forecasting another 25 basis Point rate cut, leading to a final rate of 3.00%.

Regarding the NZD/USD currency pair, UBS expects the New Zealand dollar to strengthen against the US dollar. The forecast calls for NZD/USD to rise to 0.64 over the next 12 months.

Key takeaways from the UBS report:

  • Positive outlook for GBP:The trade deal between the US and UK is seen as a factor supporting the strengthening of the pound.
  • Recommendation for GBPUSD:Opening long positions at the level of 1.3390 with a target level of 1.38.
  • Interest rate forecast:The rate is expected to be cut by 25 basis points to 3.00%.
  • Forecast for NZD/USD:The New Zealand dollar is expected to strengthen to 0.64 within 12 months.

Important to note:

Прогнозы, представленные UBS, основаны на текущих экономических условиях и ожиданиях. Рынки валют подвержены высокой волатильности, и фактические результаты могут отличаться от прогнозов. Инвесторам следует проводить собственное исследование и учитывать свою толерантность к риску, прежде чем принимать какие-либо инвестиционные решения.

В заключение, отчет UBS подчеркивает потенциальные выгоды для фунта стерлингов от торговой сделки между США и Великобританией, а также предоставляет прогнозы по процентным ставкам и другим валютным парам. Инвесторам следует внимательно изучить эту информацию и учитывать ее в своих инвестиционных стратегиях.

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