What is the outlook for GBP/CHF?
Here is their view, courtesy of eFXdata:
Credit Agricole CIB Research likes long GBP/CHF exposure around current levels targeting a move towards 1.2680.
“Our central case remains that a ‘bare-bones’ free trade agreement (FTA) will be reached between the UK and the EU before the end of the Brexit transition period on 31 December,” CACIB notes.,
“At present, GBP/CHF is looking very undervalued relative to a long-term fair value of 1.3000, which assumes a trade deal between the UK and the EU. We further note that current levels in GBP/CHF offer attractive levels for market longs given that FX spot is trading below its short-term fair value of 1.2050,” CACIB adds.
Source:
CRÉDIT AGRICOLE RESEARCH/MARKET COMMENTARY
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