GBP/USD forecast: Goldman Sachs predicts rise to 1.30 amid dovish outliers

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 Source