One of Germany's largest banks thinks the British Pound is set for another strong year against the Euro. However, a key risk is an economic slowdown following Rachel Reeves' budget.

The British Pound is described as "a diamond in the rough," by Goldman Sachs in their new year-ahead forecast publication, in which a new set of post-election forecast targets suggest solid gains in the coming months.

Pound Sterling could lose further value against the Euro in the coming week if UK inflation and PMI data undershoot expectations.

"A bit more juice in sterling," says Kit Juckes, head of FX research at Société Générale.