Goldman Sachs expects GBPUSD to reach 1.40 within 12 months

Goldman Sachs reportedly expects the US dollar to gradually weaken as yields lose their appeal after the Federal Reserve's sharp rate cuts. Goldman Sachs has raised its forecasts for major currencies such as the euro, sterling and the yen.

The dollar's high valuation won't be eroded quickly or easily, but the bar has been lowered a bit, Goldman strategist Kamakshya Trivedi and others wrote in the report.

Based on its latest forecasts for the dollar, Goldman Sachs now expects the pound to reach 1.40 against the dollar in 12 months, up from 1.32 previously. this is the first time the outlook has reached that level since 2021.