UBS raises pound forecasts, still expects near-term weakness
UBS said on Monday it was raising its forecasts for the pound in the near term but still expects the currency to fall against the dollar as Britain faces “high inflation and chronically weak growth”.
Strategists at the Swiss bank raised their forecast for the currency to $1.19 by the end of March, from the previous forecast of $1.16, and raised the forecast to $1.23 by the end of June from $1.21 previously.
UBS maintained its sterling forecasts for end of September at $1.24 and year-end forecast of $1.30.
China’s reopening after its Covid-19 restrictions have raised hopes for exporters across Europe, including in Britain, and European markets have also been helped by energy prices which have fallen sharply in response to a warm winter.