MUFG Pound to Swiss Franc Forecast: GBP/CHF Target Remains 1.02

MUFG expects the pound to weaken against the Swiss franc, maintaining a GBP/CHF target of 1.02. GBP/CHF peaked near 1.0680 in late April but has retraced to about 1.0580 this week. MUFG cites an expected decline in yields — particularly if higher energy prices and rising mortgage rates hit the UK economy — and political risk from May 7 local elections as pressure points for sterling. While the Swiss National Bank’s willingness to intervene has limited franc gains, MUFG still backs a stronger franc over the medium term. The call implies downside pressure for GBP/CHF and potential market positioning around the 1.02 target.