Economists at UBS update their forecast for the likes of the Swiss Franc, the British Pound and the Australian Dollar.
Weak growth outlook and still-high inflation to weigh on Sterling
“We move the Swiss Franc down to Neutral after strong gains versus the US Dollar. Nevertheless, we believe the Swiss National Bank is committed to preserving Franc’s strength to limit imported inflation, and that the currency will be supported by safe-haven flows.”
“In the UK, the weak growth outlook and still-high inflation are likely to weigh on Sterling, and we maintain our Least Preferred view.”
“We like the Australian Dollar, which should be supported by China’s reopening, relatively strong domestic economic growth, and a central bank that is likely to keep the reins tight when the Federal Reserve is starting to ease monetary conditions.”