Bullish
UBS forecasts GBP/USD to reach 1.38 by December, citing peak Fed rate expectations.
UBS anticipates a 6.4% recovery in GBP/USD by December, projecting a rise to 1.38. This outlook is based on expectations that the Federal Reserve's rate hikes have peaked, potentially easing the US dollar's strength. UBS also notes that while US economic resilience is acknowledged, stronger European data and market pricing reaching peak hawkishness for the Fed support this forecast.
Key points
- UBS projects GBP/USD to reach 1.38 by December, citing peak Fed rate expectations.
- UBS acknowledges US economic resilience but highlights stronger European data.
- Market pricing for the Fed is considered to have reached peak hawkishness.
Sources
AI-generated from public news sources. Not financial advice.
