UBS predicts GBPUSD could rise to 1.30 by year-end

Sterling is likely to strengthen against the US dollar GBP/USD for the rest of the year as the Federal Reserve is likely to cut interest rates more than the Bank of England, says UBS Global Wealth Management. UBS analysts expect fixed income investment flows to increasingly favour a higher GBP/USD as the Fed is expected to cut interest rates by 100 basis points before the end of the year, compared to the Bank of England's 50 basis point cut over the same period. They said GBP/USD could rise to 1.30 by the end of the year.