The British pound keeps tumbling as Goldman backs call for dip to $1.20
On Friday, the British pound still seems to be vulnerable enough to veering lower, as Goldman Sachs states. It would be prudent not to get cozy with the idea that Britain’s economy has already escaped unscathed from the Brexit vote.
The major British currency is trading around $1.33 vs. the greenback, while the common currency is fetching approximately 84 pence. It compares with Goldman’s three-month call, published in July, to see the pound-greenback pair hit a minimum of $1.20 and the euro to edge up to 90 pence, respectively.
The sterling has fared better than Goldman had forecast after in August the BoE launched an aggressive stimulus program for the purpose of cushioning the British economy from Brexit.
On Thursday, the sterling, which traders have shorted at record levels recently, soared after a suddenly upbeat reading in British manufacturing PMI in August, which achieved a 10-month peak.