UBS Report: GBPUSD
By the Chief Investment Office: Daniel Trum, CFA, Strategist; Thomas Flury, Strategist
Brexit uncertainty and a strong US economy should continue to favor the USD over the GBP for the next three months. Hedging currency risks looks attractive.
We still expect a favorable outcome for Brexit negotiations, but the risk of a cliff-edge Brexit remains significant. In our base case, GBPUSD should recover over six to 12 months.
We are maintaining our GBPUSD forecasts at 1.22 over three months, 1.30 over six months and 1.36 over 12 months.