GBPCHF Sterling Rebound Meets Fading CHF Demand

UBS expects the GBPCHF to appreciate as high carry and improved UK political sentiment outweigh safe-haven demand for the Swiss franc. The pair remains a preferred carry trade given the persistent yield differential.

Key Takeaways

• 1.GBPCHF is expected to trend higher due to high carry and receding UK political risks.
• 2.Swiss franc demand is fading following the Iran conflict, and it remains a key funding currency.

Table of Contents

• GBPCHF: Sterling rebound meets fading CHF demand
• GBP downside limited, with rebound potential
• Swiss franc demand should ebb post-Iran conflict
• CIO Forecast- GBPCHF
• GBPCHF likely to move higher from here
• Investment Considerations
• Heavy short positioning has already prevented the pound from falling further
• Risk information

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