Pound-to-Dollar Forecast Upgraded at Goldman Sachs: Reeves Selloff Done - Pound Sterling Live

What the desk is arguing

Goldman Sachs is optimistic about the Pound against the Dollar, indicating that the selloff following Chancellor Jeremy Reeves' fiscal announcements may have reached its conclusion. The firm's upgrade signals a recognition of improving economic fundamentals in the UK and the prospect of a more stable political environment.

Supporting this view, recent economic data has shown resilience, with key indicators pointing towards a robust recovery trajectory. Furthermore, a reassessment of monetary policy and potential interest rate adjustments by the Bank of England could further bolster Sterling's strength against the Dollar moving forward.

Where it sits in our coverage

Our consensus target for the Pound-to-Dollar pair is currently set at 1.075, within a range of 1.04 to 1.12. Goldman's upgrade aligns with our view that the market may have overreacted to recent fiscal announcements, as we anticipate a gradual recovery bolstered by favorable economic trends.

Specific targets from notable firms in our coverage include: - JPMorgan: 1.10 (Mar26) - Barclays: 1.08 (Mar26) - Deutsche Bank: 1.06 (Mar26)

How other firms see it

UBS holds a contrary view, maintaining a cautious stance towards the Pound, with a target of 1.02 due to ongoing political uncertainty. Similarly, Credit Suisse projects a conservative target of 1.03, suggesting skepticism regarding the sustainability of any recovery in Sterling.

• Firm stances against Goldman's upgrade:
• UBS: contrary, target 1.02
• Credit Suisse: contrary, target 1.03