Swiss Life Asset Managers has adopted a neutral stance towards EUR/USD. Its view of GBP/USD remains negative despite the UK’s economic recovery.
Following a three-month rally, the EUR ran out of momentum in August. EUR/USD stabilised at around 1.185. Swiss Life Asset Managers currently considers a further appreciation of the currency pair to be unlikely and is adopting a neutral stance.
Although domestic political risks still persist in the US, the economic momentum now appears more balanced. While Europe recorded a strong upturn in July, this is likely to decline in August due to renewed restrictions caused by the pandemic.
Swiss Life Asset Managers is also neutral vis-à-vis EUR/CHF and USD/JPY, albeit with a negative trend. For risky investments, it currently sees a lot of positive developments priced in that could lead to appreciation pressure for the CHF and JPY.
Sterling strengthened in August and economic activity has recovered in the current quarter. Nevertheless, Swiss Life Asset Managers is upholding its negative view of GBP/USD at least as long as the trade negotiations with the EU show no sign of progress.