Gbpchf To Move Higher Ubs

Gbpchf To Move Higher Ubs by Ashly Chole last updated on July 18, 2025

Gbp/Chf To Move Towards 1.13 to Ubs

According to the UBS forecast, the GBP/CHF pair is expected to rise towards the 1.13 handle. For now, the pair is seen exchanging hands near the 1.1000 level amid the ongoing geopolitical tensions.

This happens at a time when the oil prices are sliding once again amid normalization of the ongoing conflicts. Looking ahead, UBS has issued a buy forecast for the GBP/CHF as they believe that it is expected to move higher.

Q3 Target For Gbp/Chf Set At 1.13

UBS added that the GBP/CHF pair will first slide under the 1.08 support. However, the Q3 target for the GBP/CHF is set at 1.13.

Going forward, the GBP/CHF will remain sensitive to the energy prices and the ongoing risk conditions. Meanwhile, the yield spreads between the two currencies will also be a key element to watch.

UBS also added that the Swiss National Bank has already cut the rates back to the zero level. In addition, the bank stands ready to take more action if that's what it will take to achieve the inflation target.

In fact, UBS believes that the Swiss National Bank will not even hesitate to delve into the area of negative interest rates. In theory, this will help them to achieve the inflation target, but it will also negatively impact the currency.

On the other hand, the Bank of England will likely keep the rates unchanged at 4.25%. This will be in line with the market forecasts. However, UBS believes that at least 2 more rate cuts are expected to happen during the rest of the year.

After the rate cuts, the interest rate in the UK will come down to 3.75%. But even that, that would be a lot higher than Switzerland and will help the GBP.

Overall, the yield will benefit the GBP and thus will attract more buying from the market as compared to the CHF.