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.
Pound Rally Against Euro Hits the Buffers
- Category: EUR
GBP/EUR surged to 1.2103 on Monday amidst a frantic sell-off in the euro, but it has since fallen back to 1.20, having recorded a sizeable 0.65% daily drop on Tuesday.