Goldman Sachs analysts are forecasting GBP/USD higher in the next six months.
Forecasting to 1.30 from it previous forecast of a drop to 1.20:
- GBP will benefit from the Bank of England being slower to cut rates compared with the Federal Reserve and European Central Bank
- Fed and ECB to start cutting in H1
- “A quicker move to rate cuts elsewhere will make the Bank of England less of a dovish outlier … quite supportive for the pound”
- mkt pricing is around 110 bp or Fed easing, 135bp by the ECB and BoE around 85bp
Info via a Bloomberg report
This article was written by Eamonn Sheridan at www.forexlive.com. Source