UBS Sticks to GBP/USD 1.40 Forecast Despite Recent Dip

The Pound-Dollar exchange rate has fallen back to 1.3534 after Jackson Hole, but UBS still sees Sterling at 1.40 by December and 1.41 through much of 2027.

According to the latest data from Exchange Rates Org UK, the GBP/USD rate ended Friday at 1.3534, down 0.46% after Kevin Warsh revived expectations for another Federal Reserve rate increase.

This leaves Cable well below its August high at 1.3675, but UBS has made no retreat from its bullish medium-term Sterling path.

UBS strategists Constantin Bolz and Dominic Schnider argued that UK politics have shifted from a headwind to a potential tailwind, while Pound Sterling remains relatively under-owned.