Goldman Sachs Pound To Euro Forecast: 1.11 In Twelve Months From Today - Exchange Rates Org UK

What the desk is arguing

Goldman Sachs anticipates the pound will strengthen against the euro, setting a target of 1.11 for the GBP/EUR pair within a year. They argue that factors such as improved UK economic indicators and the European Central Bank's positioning could lead to this upward movement in the exchange rate.

Additionally, Goldman’s analysis suggests that careful monitoring of inflation rates and policy responses from both the Bank of England and the ECB will be critical. While they propose a bullish outlook, they implicitly reject the stance that ongoing geopolitical tensions and economic headwinds will impede this anticipated performance.

Where it sits in our coverage

Our current consensus for the GBP/EUR pair stands at 1.075, with a firm spread of 1.04 to 1.12. Goldman’s target diverges positively from this midpoint, suggesting increased optimism about the pound's potential to outperform the euro.

Among our coverage, notable targets include: - JPMorgan: 1.10 (Mar-26) - Barclays: 1.08 (Mar-26) - Deutsche Bank: 1.07 (Mar-26)

How other firms see it

Some firms are taking a more cautious approach, reflecting concerns over the potential volatility in the GBP/EUR exchange rate. For instance, BofA holds a more pessimistic stance with a target of 1.04, indicating a belief that external pressures may weigh on the pound's strength.

Specifically, we find a mix of aligned and contrary views: - Aligned Firms: - JPMorgan: 1.10, aligned with overall bullish sentiment. - Barclays: 1.08, supporting a positive outlook for GBP.

• Contrary Firms:
• BofA: 1.04, suggesting a bearish perspective on GBP performance.