UBS Says Euro-Pound Parity Would Represent a ‘Clear Overshot’

By Daniel Tilles

Jan. 7 (Bloomberg) -- Investors should avoid betting on the pound reaching parity with the euro, UBS AG said.

“Any chase for parity in euro-pound is a clear overshot and offers limited risk-reward,” Ashley Davies, a currency strategist in Singapore at UBS, wrote today in an investor report.

The pound strengthened 0.2 percent to 90.56 pence per euro as of 6:51 a.m. in London. It weakened to a record 98.03 pence on Dec. 30.

To contact the reporter on this story: Daniel Tilles in London at dtilles@bloomberg.net