UBS optimistic on British pound, sets EUR/GBP target at 0.8400

UBS expressed a positive outlook on the British pound, citing recent comments by the UK's new Chancellor, Rachel Reeves, about the government's growth agenda. Reeves emphasized the limited scope for government spending, indicating that the administration would focus on supply-side reforms to stimulate investment and growth.

UBS noted that while similar pledges have been made by past UK governments, the current emphasis on a dynamic approach to change could be beneficial for the British economy.

The brokerage firm also highlighted the political stability of the United Kingdom, stating that it has the most stable government within the G7 nations for the upcoming five years.

This stability, according to UBS, is expected to attract structural flows to the British pound, marking a positive shift for the currency in the post-Brexit-vote era. As a result of these factors, UBS maintains its target for the EUR/GBP exchange rate at 0.8400.

The forecast is based on the combination of the UK's stable political environment and the potential positive impact of the government's commitment to supply-side reforms. UBS suggests that these elements could lead to an increase in investment, which in turn might support growth in the British economy.

The UBS outlook presents a scenario where the British pound could strengthen against the euro, potentially reaching the 0.8400 level. This would indicate a significant appreciation of the pound relative to its European counterpart.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Source: Investing.com

Последние публикации
Macquarie sees stable USD/CAD trend, eyes 1.35 mid-year target
26.01.2025 - 14:00
Asia FX extends losing streak on Trump tariff fears; BoJ rate decision in focus
26.01.2025 - 14:00
PBoC adjusts policy amid rising USD demand
26.01.2025 - 14:00
Dollar edges higher; Trump's speech at Davos in spotlight
26.01.2025 - 14:00
BofA opens long USD/KRW trade amid tensions
26.01.2025 - 14:00
BCA Research Chief Strategist sees US Dollar falling by mid-2025 on Trump policy woes
26.01.2025 - 14:00
Asia FX rebounds on Trump’s rate cut calls; yen rises on BOJ rate hike
26.01.2025 - 14:00
Trump orders crypto working group to draft new regulations, explore national stockpile
26.01.2025 - 14:00
Dollar heads lower on Trump comments; euro gains after PMIs
26.01.2025 - 14:00
Dollar strength likely to continue near term - UBS
26.01.2025 - 14:00
U.S. lawmakers are light on crypto heading into new Trump era
26.01.2025 - 14:00
US top diplomat Rubio urges Vietnam to address trade imbalance
26.01.2025 - 14:00
Forex markets: How far can the relief rally go?
26.01.2025 - 14:00
Asia FX slips after Trump inauguration; BOJ, BNM rate decisions awaited
22.01.2025 - 17:00
Factbox-What's the US-China Phase 1 trade deal signed in 2020?
22.01.2025 - 17:00

© Analytic DC. All Rights Reserved.

new
Анализ рынка Как повлият завтра отчет NFP на курс доллара США?