Following the “Leave” side prevailing in the U.K. referendum, UBS analysts believe the EUR/USD will continue its gradual convergence higher toward a fair value of around 1.25. Daniel Waldman and team said in their July 5 research piece titled “Global FX Atlas: Which views remain after Leave?” that they believe the USD’s strength has been limited post-referendum.
GBP remains the best way to trade Leave vote
Waldman and colleagues believe that post the U.K. referendum, the FX implications have been limited and mostly concentrated in GBP. The analysts believe the GBP remains the best way to trade the Leave vote. They see the U.K.’s large current account deficit as the main source of risk for the GBP. They note that the current account...
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