07:03 AM EDT, 06/24/2025 (MT Newswires) -- Since its last update, GBPCHF has come under pressure from weaker United Kingdom labor market data and escalating tensions in the Middle East, said UBS.

The bank thinks that sterling (GBP) and the Swiss franc (CHF) should regain the lost ground, barring further

negative risks events.

The mid-June central bank meeting marathon is now behind investors, noted UBS.

The Bank of England will continue its gradual easing path, while the Swiss central bank (SNB) rate is back to zero. This underlines sterling's carry attractiveness in the GBPCHF pair, wrote the bank in a note to clients.

From here, UBS expects GBPCHF to appreciate toward 1.13. The bank forecasts a pullback to 1.10 next year, as the rate differential is set to shrink.