Goldman Mark Near-Term Cable Forecasts A Little Higher

Goldman Sachs still think that “GBP has room to run higher if slightly looser financial conditions and better UK growth pricing persist.”

• They suggest that the upcoming BoE “meeting is unlikely to host meaningful changes to the Bank’s stance on the appropriate path of policy.”
• Near-term, they warn that “a more hawkish message from the Fed could risk injuring the latest rally in growth pricing, cutting into some of GBP’s recent outperformance.”
• They note that “with cable now trading around our target, we are raising our forecasts to 1.30, 1.33 and 1.35 in 3, 6 and 12 months (from 1.28, 1.30 and 1.35 previously).”