Thomas Flury, Strategist at UBS, has issued a strategic recommendation for a long trade on the British pound against the Swiss franc, targeting a move to 1.15.
According to Flury, this recommendation is backed by strong technical indicators and solid fundamental support.
Flury highlights the attractive valuation of the pound sterling against the Swiss franc, attributing its previous downward pressure to political uncertainty and perceived loose monetary policy in the UK.
However, the strategist believes that the pound’s fortunes have turned, with political stability restored and the Bank of England (BoE) demonstrating a stronger commitment to combatting inflation.
Flury notes that these positive shifts have not yet been fully reflected in the pound’s valuation.
The trade timing aligns with the upcoming central bank meetings in the UK and Switzerland, both scheduled for June 22nd. Flury expects the trade to perform well during these key events.