Back
16 Jul 2015
EUR/GBP at 0.65, GBP/USD at 1.46 in 12-month – Goldman Sachs
FXStreet (Edinburgh) - In the view of analysts at Goldman Sachs, the sterling could appreciate vs. the euro, while it could lose ground against the US dollar.
Key Quotes
“Sterling has appreciated notably in the past year on the back of a substantial improvement in activity indicators and a re-evaluation of the UK’s monetary policy prospects, particularly vis-.-vis the Euro area”.
“We expect further GBP strength as a function of relative growth differentials between the UK and Euro area”.
“This economic strength will likely support capital inflows, which would offset some of the external vulnerability linked to the relatively large current account deficit”.
“We maintain our forecast for EUR/GBP of 0.69, 0.67 and 0.65 in 3, 6 and 12 months, which we adopted on March 13. This implies GBP/$ at 1.48, 1.49 and 1.46”.
Key Quotes
“Sterling has appreciated notably in the past year on the back of a substantial improvement in activity indicators and a re-evaluation of the UK’s monetary policy prospects, particularly vis-.-vis the Euro area”.
“We expect further GBP strength as a function of relative growth differentials between the UK and Euro area”.
“This economic strength will likely support capital inflows, which would offset some of the external vulnerability linked to the relatively large current account deficit”.
“We maintain our forecast for EUR/GBP of 0.69, 0.67 and 0.65 in 3, 6 and 12 months, which we adopted on March 13. This implies GBP/$ at 1.48, 1.49 and 1.46”.