UBS: Trump's term boosts safe-haven currencies, and the pound may still remain stable against the Swiss franc

Jinshi Data News on January 20th, UBS Global Wealth Management strategist said in a report that the pound against the Swiss franc may fluctuate narrowly in the near future, as the favorable interest rate differential is offset by safe-haven funds flowing into the Swiss franc. Compared with the Swiss Merkez Bankası, the British Merkez Bankası is expected to gradually cut interest rates. The strategist said, ‘Nevertheless, in periods of increasing uncertainty, such as risks related to US trade policies, the Swiss franc remains a reliable risk hedge tool.’ At the beginning of Donald Trump’s presidency, there may be an increase in safe-haven demand, and Switzerland’s export structure should protect the country from the impact of Trump’s proposed tariffs. UBS expects the pound against the Swiss franc to trade in the range of 1.10-1.135.