Goldman Sachs: GBP/USD to grow to 1.73 in six months.
2010-03-09 10:40 |
Goldman Sachs: GBP/USD to grow to 1.73 in six months.
Goldman Sachs Group Inc. regards the slump of pound to the lowest level for 10 months as positive factor for British economy making it more competitive than European.
The analysts believe that despite budget crisis in euro zone the single currency is still overvalued. British pound, on the other hand, is estimated very low.
Sterling contracted by 7% since December 31. The main reason was the risk of having minority government after June elections that drew up according to the polls results. In addition UK budget deficit is equal almost to 12%.
Goldman Sachs predicts that British economy will overrun EU in terms of economic growth. In fourth quarter it already rose by 0.3% overcoming previous decline period. The bank expects pound to grow to $1.73 in six months.
Chart. Daily GBP/USD
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