According to poundsterlinglive.com UBS have this week written to clients and warned another major leg of British Pound weakness is underway.|
~ Pound to Euro exchange rate today: 1.1357
~ Euro to Pound Sterling exchange rate today: 0.8805
Having fallen 13.4% between July 2007-March 2008, Sterling has traded sideways against the Euro and other majors for four months.However, the expected break-out that follows such periods of consolidation has taken place in early October triggered by a renewed focus on the Brexit debate over the course of the ruling Conservative party’s annual conference.
The big question from a currency forecasting perspective has understandably become whether or not there is more of a Brexit-related risk-premium to be absorbed by the currency.
UBS have this week written to clients and warned another major leg of British Pound weakness is underway and today the pound touched 1.13.
UBS reiterate our forecasts for the end of 2017 of $1.20 for GBP/USD (currently 1.288), and 1.00 for EUR/GBP (currently 0.874).