Mitsubishi UFJ Financial Group: If risk appetite further weakens, the British pound against the Swiss franc may fall.

Sina Finance news on March 30th, Mitsubishi UFJ Bank analysts said in a report that if the risk appetite further declines due to the Iran war, the British pound against the Swiss franc may weaken. They said that as investors shift their focus from the impact of rising energy prices on inflation to the impact on growth, risk aversion sentiment may increase. They stated that this situation could weaken the pound, while the market is also concerned about stagflation in the UK, where economic growth is weak while high inflation persists. The impact of this situation would outweigh the prospect of interest rate hikes by the Bank of England, which has been supporting the pound recently. Meanwhile, the lagging Swiss franc is expected to benefit from its safe-haven status. Mitsubishi UFJ Bank recommends selling the British pound against the Swiss franc. Data from the London Stock Exchange Group shows that the British pound against the Swiss franc fell 0.3% to 1.0554 Swiss francs, after reaching a two-month high of 1.0623 Swiss francs on Friday.